Research On The Development Of Internet Finance And Financial Regulatory In China

The combination of the Internet and finance emerged as a new financial pattern,which is developing rapidly and has made a great breakthrough to the traditional financial industry.Internet finance extends the boundaries of the financial markets,and provide micro customers with a more convenient investment and financing platform that have more financial products in lower prices.However,high level of leverage and a broader extent cause the risk of the Internet finance more comprehensive,which bring negative influence to the stability of the financial industry.The Internet finance is restructuring the financial markets in a new way and the financial industry is faced with opportunities and challenges at the same time.So far,academic researches of Internet finance focused on theoretical origin,the nature of property,development pattern,risks and regulatory.Reforming the existing financial regulatory model has become a consensus theory,but how to reform has not yet formed a unified point of view.And most research isolated the Internet finance regulatory issues from the financial industry.However,the Internet finance doesn't break the traditional definition of finance,just change the management pattern of traditional financial institutions.It still belongs to the financial industry.The Internet finance regulatory is an important part of the entire financial supervision,so the Internet financial regulation can not be divorced form the existing regulatory system.With the Internet finance process from scratch,the existing financial regulatory system needs to be updated and improved.After reviewing the theoretical overview and development status,the paper analyzes the risks of the Internet finance and regulatory issues.Subsequent to review the development of the international financial regulatory model,we try to find a suitable financial regulatory model for our country,and finally give some new ideas and designs for the financial supervision.Through a wholesome analysis,the paper gets following conclusions:First,the Internet finance and traditional finance differ in four aspects,target customer base,service models,risk characteristics and restraint mechanisms,and both have their own advantages.They compete with each other.But the essence of both is finance,and they are complementary.The Internet finance and traditional finance should be coordinated to promote the development of the financial industry.Second,the emergence of the Internet finance breaks the boundaries of separated operation in traditional finance market,and enhances the risk of infectious and uncertainties.The current separated supervision model and the legal system are not suitable any more.Incomplete unified regulation model may be a better choice.Third,according to the trend of the mixed operation and risk characteristics of the financial industry,the combination of macro-prudential and micro-prudential,government regulation and industry self-regulation,institutional regulation and functional supervision is more conducive to the stability and development of the financial industry.