On Financial Globalization In The Context Of The Reform And Perfection Of China's Financial Supervision System

With the speed of world economy integration, global capital flow becomes active, the problem of financial supervision is not only directly linked to the whole banking industry, but also the whole economy's security and stability. So the system of financial supervision gains universal concern of all countries. The system of financial supervision in our country has many problems, it's necessary and inevitable to have some reform and improvement.Multiple supervision and supervision blank coexist in the system of financial supervision in our country. There is a lack of cooperation and coordination between the supervision authorities, supervision efficiency should be improved. In addition, the information disclosure system is not perfect, and information transparency is low, it's difficulty to manage the supervision of financial innovation products, it also can not adapt to the international trend of comprehensive management. So we should positively learn from developed countries, and undertake the reform from the points of supervision system, institutions and structures, gradually make a change from institutional supervision to functional supervision to meet the need of rapid development of the financial industry.This paper is organized as follows. Chapter 1 is an introduction targeting the significance of the essay, development of related studies, the arrangement and innovation of the paper. Chapter 2 introduces the development history of the supervision system, we review the whole course of development,and we conclude the achievements and experience. Chapter 3 mainly analyses update situations of the supervision system, introduces the process and background of development, the drawbacks of the supervision system, and the difficulties it confront. In Chapter 4, we establish a theoretical model, we analyse the choices of the depositors and investors, the supervisory board and the financial institutions under the situation of information asymmetry, and we gain the terms which can make sure the supervisory board's best efforts and we also gain the terms which can make the financial institutions subject to the supervision, and we conclude that more information asymmetry of the financial market cause lower stimulation level of the supervision authorities, which makes the supervision efficiency and social welfare standards much lower. Chapter 5 gives some suggestions following the previous discussion including to strengthen the coordination and cooperation between various departments, establish a sound legal system, establish information disclosure system, strengthen early-warning mechanisms, and strengthen cooperation with international financial institutions.When comprehensive management widely spread, the supervision system in our country walk hardly. Innovative products constantly emerge, which sets higher standards to the supervision system. In future, it's clear that the supervision and management will increasingly unite, this is because, as finance liberalization and financial innovation develop rapidly, different financial institutions have closer relationship, and the distinguish between services blurres. In order to strengthen the coordination between different departments, to improve the supervision efficiency, it is necessary to adopt the functional financial supervision. So we should undertake a reform to the existing supervision system to improve the supervision level, to ensure the supervision timely and available, so that we can make sure the maximum implementation of supervision measures across different departments, different markets and different mechanisms.