The Study On The Development And Supervision Of The Internet Finance In China

This paper considers that internet financial is related with the aid of electronic computer or mobile terminal equipment platform, in order to realize social cash flows, financial intermediaries and data exchange for the target of a class of new formats, and together with the forms of online financing system, online financing and external market environment. As a new innovation in the financial ecological mode, the internet finance grows deeply development at home and abroad and the impact on the current financial industry is unprecedented; the uncertainty characteristics existing in the electronization, digitization and efficiency, service supply comprehensiveness, opening, and the popularity is very obvious; This paper summarizes the development trend and the general cognition of the academic circles, put forward the specific connotation and extension of the Internet financial, defines the basic characteristics and main forms of Internet finance, describes the evolution and development of the Internet finance and the challenges to the traditional financial industry. taking the small and medium-sized commercial banks as an example, this paper holds that the development of Internet finance has a far-reaching impact on china's traditional financial institutions.This paper puts forward the specific meaning of Internet financial risk, analyzes several prominent features of Internet financial risk, and explores the risk of Internet finance constitute and cause which from the institutional and non-institutional factors. This paper argues that the meaning of Internet financial risk is causing unpredictability of operating income or operating losses when carrying out Internet financial business. The specific characteristics of the internet financial risks can be summarized as: highly infectious, a high degree of information technology, superior timeliness and complexity. Internet financial risks can be categorized on its main characteristics dividing into the legal risk, technology security risks, operational risks, and cross-border risk, etc. The paper thinks that, the non-sound laws and regulations, the absence of regulatory mechanisms, the hidden loopholes in the prevention and control system is the institutional factors leading to the formation of internet financial risks; and the non-advanced or unscientific mobile information technology and social credit system is the non-institutional factors leading to the formation of internet financial risks.Based on the external experience of internet financial risk supervision, this paper put forward a comprehensive set of framework and mechanism of the internet financial supervision, clearly proposes the main body, content and target positioning of the china's Internet financial supervision, and put forward the innovation of the main link, the index system design of internet financial risk supervision. After summarizing the main findings and conclusions, this paper combines with the actual situation of the internet financial risk of china, proposes the measures which strengthening the internet financial risk regulatory of china, gives some practical strategies and suggestions of strategic adjustment of small and medium- sized financial institutions.