| Along with the deep development of mixed operation of the finance industry and financial globalization, the finance regulation and supervision modes of nations in the world have experienced major changes. At present, there are still different debates on whether it is possible to draw the international finance regulation and supervision modes to establish those suitable for our conditions. This paper intends to provide some hints for establishing the finance regulation and supervision modes suitable for our conditions through introducing international different types of finance regulation and supervision modes.I Introduction to Finance Regulation and SupervisionFinance is the core of modern economy. Financial conditions play a vital role in the operation and development of social economy, which requires the finance administrative authority to fulfill such purpose through finance regulation and supervision so as to ensure the orderly operation of finance with fair competition and efficiency.Since 1990s, the world economy and international finance market have great changes. Under the rapid development, the financial risks are also increased considerably, which even highlights the necessity of the finance regulation and supervision.II Present Situations and Problems Faced of Our Finance Regulation and Supervision ModesDuring the reform of our finance regulation and supervision system in 1998, the people's bank established regulatory departments towards banks and non-bank financial institutions to carry out regulation and supervision of finance industry through specific rules. In March 1998, the Security Commission under the State Council was removed, whose functions are exercised by the China Securities Regulatory Commission (CSRC in short). In November, the China Insurance Regulatory Commission was specially organized to be responsible for regulation and supervision on the insurance industry. Thus, a financial operation mode with segregation of financial business and regulation and supervision is established and perfected. Problems exist for the segregation of financial regulation adopted in China: 1. inadequate independence of finance regulation; 2. poor coordinationbetween finance regulatory institutions.III Evolution and Selection of International Finance Regulation and Supervision ModesCurrent international major regulatory modes:1. Separated regulation and supervision mode between the central bank and other institutions focusing on the central bankThe finance regulation and supervision in US is complicated, which includes both the regulatory institutions established on the basis of the Federal Law and the regulatory institutions of state government established on the basis of the state law. Furthermore, the regulatory institutions on banks, securities and insurance are established respectively.The Reserve Bank of India (central bank) is responsible for the regulation and supervision on banks and non-bank finance institutions, which also includes the regulation and supervision on the insurance business operated by the banks. The India Security Trading Commission is responsible for the supervision of the security industry.2. Comprehensive regulation and supervision mode independent of the central bankGermany is a state that first established the independent comprehensive finance regulation and supervision institutions. The Bank Supervision Bureau (BSB) is directly subordinated to the Ministry of Finance of Germany and is authorized to take the central role in the bank regulation and supervision. The BSB in fact is a comprehensive finance regulation and supervision authority. Britain is a typical representative implementing the central regulation and supervision on the finance industry. The Finance Regulation and Supervision Commission established in October 1997 becomes an independent central institution implementing overall regulation and supervision on banking, security and insurance industries.Developing tendency of international regulation and supervision modes... |
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