Study On Government Regulation Of Internet Finance

In recent years,with a series of advantages,such as convenient,fast,efficieny and low-cost,internet finance subverts the previous financial payment and trading methods,has great impact on the traditional financial institutions and financial system,and shows a lot of characteristics,such as mixed operation and globalization.At the same time,internet finance is also facing liquidity risk,credit risk,reputation risk,information technology risk,compliance risk and operational risk,due to the underdeveloped legal system,the lag of regulation,the extensive management and the lack of self-regulation.Compared with the developed countries such as US and UK,there are still some problems in the legal supervision system,the coordination between the supervisors is difficult,and self-regulation is inadequate,which leads to repeated supervision and inadequate supervision.There are strong externalities in the financial industry.Given the impact that internet finance has on the stability of China’s finance,it is valuable both in theory and practice to study and improve the regulation of internet finance in China.In this paper,by using political science,management,economics,finance and other theories,I take financial service,which has economies of scale and low marginal cost,as a kind of non-exclusive,weak competitive public goods,and the regulation of finance is a kind of government intervention in the market,which can improve the efficiency of resource allocation and alleviate the market failure.In order to encourage the innovation of internet finance,to deal with the risks effectively,to reduce crime,to enhance market confidence,to protect rights and interests of consumers,I study from the development status and regulatory status of China’s internet finance,outline problems and put forward some policies and suggestions to strengthen the regulation.This article is divided into five chapters.The first chapter is introduction;it introduces study purpose and meaning,study thinking and methods and possible innovations of the paper,and summarizes study status.Using case analysis method,from the different forms of internet finance to start,the second chapter introduces the status of internet finance,and illustrates the risks faced.The third chapter summarizes the existing problems from five aspects:the legal system is underdeveloped,the coordination between the regulatory authorities is difficult,self-regulation is inadequate,regulation and innovation is incompatible and it is easy to lead to regulation duplication and absence.The fourth chapter adopts the comparative research method,on the basis of the experience of American and British internet financial supervision,gives the policy suggestions to strengthen the regulation of internet finance in China.Chapter five gives the main conclusions of this paper and the direction of further research.On innovation,this paper studies from the regulatory system of China and the development status of internet finance,combs the published regulatory policies and regulations comprehensively,makes a deep exploration on the role that the different regulatory authorities should play in the regulation of internet finance.From the top to the bottom,the top to the grass-roots,the concept to the operation principle,this paper gives policy suggestions to strengthen the regulation of internet finance from five aspects:"law,principle,mechanism,practice and environment",and the improvement suggestions are operable.