Legal Regulation Of Local Financial Regulatory Competition In China

On the premise that local governments undertake responsibilities of local economic development and local financial regulation,local financial regulation has evolved regulatory competition,which becomes the most prominent performance of local financial regulation.By means of producing supervisory regulations or bylaws,excecuting them and disposing financial risks,local governments compete with each other to create the excellent atmosphere where private financial institutions or forms grow effectively.The forms of local financial regulatory competition in China include legislative competition or competition in enforcement,temporary competition or normal competition.Up to now,there are fundamental law,competitive law and regulatory law about the legal regulation on the regulatory competition.Whereas,there exist some shortcomings.For example,fundamental law is not systematic,and competitive law lacks coordination rules,as well as regulatory law lacks operability.After investigating legal regulation of local financial regulatory competition in America and Canada,we can conclude that the legal regulation should pay attention to the origin of regulatory competition,be careful of system risks and take soft law and hard law into effect in the meantime.In order to promote the legal regulation,first,we should accomplish the legalization of decentralization between central and local governments.For achieving this goal,we should explicit financial regulatory jurisdiction between central and local governments by means of law or administrative regulation,explicit the scope of business and the amount of money as the standard of decentralization between central and local governments,be sure of integration of power and responsibility,and keep dynamic adjustment of the decentralization.Second,we should build the regulatory coordination with the help of central government,including legislative coordination or coordination in enforcement.Besides,we should make local financial regulatory institution independent relatively.For achieving this goal,we should propel centralization of transverse power,build a system of vertical management,and make the local financial regulatory institution to accept the leadship of provincial governments and the supervision of central coordinating body.