Institutional Economic Analysis Of Financial Consumer Rights And Interests Protection In China

According to the principle of institutional economics and game theory method, the article analyses the necessity of financial consumer protection and the problems existing in financial supervision in China, and also provides some appropriate advices for perfecting our financial supervision system and financial consumer protection.This article mainly discusses four topics:the first one is that the artical redefines the concept of "financial consumers" through the representation analysis of "the financial consumer" and analyzes the institutional defects which exist financial consumer protection in China; the second is that the artical discusses the relatioship under game theory among our country government, the social public, the regulators and the regulated financial institutions in the process of financial supervision, and accordingly puts forward the related conclusions that the financial consumer protection needs joint efforts; the third is to choose banking depositors and lenders’ relevant data as evidence, giving an analysis on the infringement of financial consumers’ rights and interests in China’s financial industry, and at the same time analyzing the mechanism of bank run model by game theory to suggest that financial consumer protection process is of great urgency; finally, this paper combines the game theory analysis and empirical analysis, and lessons learnt from the US subprime mortgage crisis after the success of financial consumer protection, the article analyses how to strengthen the financial consumer protection by using game theory method again, and puts forward some policy recommendations which are conducive to the interests of financial consumer protection in China, such as:to strengthen the construction of financial safety net and fully bring into play the function of market restraint mechanism, etc.Conclusions:financial consumer protection is one of the goals of financial regulation, then financial consumer rights and interests can not only be ignored, but also need the joint efforts of both internal supervision and external supervision, that’s to say ffective supervision of the government public power is needed, especially the efficient implementation of financial safety net, at the same time financial consumers and related stakeholders should also actively participate and cooperate, to give full play to the market restraint mechanism in the core of financial regulation.