On The People's Bank Of China Financial Regulation

The financial supervision of The People's Bank of China (the PBC) means the PBC working as the chief organization of the nation's financial policy, legally supervises and manages the financial institutes and their operation in the power bestowed by law to maintain the normal economic order, protects the interest of the depositors and investors, ensuresa secure, healthy, efficient operation of the financial system. The People's Bank of China, as a government responsible offices of financial administration, is the main body for financial supervision, and its act of supervision is deemed lawful, most of which is one-way behavior, its objects being specific people and events. What the system of the financial supervision of the PBC adopt is a concentrating and individual models of bank supervision.The financial supervision of the PBC is an important form for the financial management of national organizations. Its ultimate aim is to ensure that, the financial business is operated legally and smoothly. The financial supervision is an important way to control finance with legitimacy, and this is determined by the content and effect of the financial law per se. The PBC's financial supervision is an important part of the financial supervision, which must observe the principle of legitimacy and reasonability.Administrative enforcement of law of the PBC is a sum of the actions which include dispensing and enforcing the financial laws, regulations and rules, according to its legitimate authority of office and legal procedures, taken by the PBC as a state organ responsible for financial administration. The intension of Financial supervision and Administrative enforcement of law of the PBC is identical,while the difference between them lies on the footings of their respective concept expression.At present, the main problems of the financial supervision of the PBC can be read as follows: the enforcement of laws is still insufficient; supervision cost has risen; the risks are not effectively controlled; the inner and outer relations of the PBC have not been smoothed. The main reason s for those are read as: first, the reforming of financial system falls behind the reforming of economy, lacking in the urgent exterior requirement for financial supervision; second, the system of financial supervision is unscientific and has brought an ill impact on the results of financial supervision of the PBC; third, the mechanism of financial supervision of the PBC is not consummate; fourth, the environment for the financial supervision of the PBC is not ideal; fifth, the contingent of financial supervision is not yet of high caliber.In the final analysis, all problems existing in the financial supervision of the PBC belongs to the systematization. Therefore, it should be administered in a comprehensive way to strengthen the financial supervision. First, perfect the laws and regulations of financial supervision of the PBC. Second, reform the system of financial supervision. Third, improve the financial supervision mechanism of the PBC. Fourth, optimize the financial supervision environment. Fifth, promote the competence of staff working in the financial system.