Policy Suggestions Of Regulation Based On The Classification Of Financing Internet Finance

Financing internet finance is a mode which has financing function,and it has several business conditions including P2P online lending and small loan company. Financing internet finance makes up for the shortage that traditional financial institutions prefer to service large and medium customers, so that the problem small and micro enterprises are difficult to get money will be relieved. However, two real teasers should not be ignored at the same time. One is that the regulation of financing internet finance is imperfect. Another is that currency policy is failed because of financing internet finance.First, financing internet finance is facing regulatory difficulties.Although the transaction size and platform size of financing internet finance are getting bigger, the problems remain. On the side, risk accidents like runaway P2P platforms erupt frequently, which damage the interests of investors and affect the stability of financial markets. On the other side,there are still many problems in regulation, and even in some places the regulation is blank for financing internet finance. The industry and scholars are generally concerned about the issue that how to regulate financing internet finance to ensure the healthy development. We study the existing financing platforms, and discover that reimbursement obligation and fiduciary duty of different type platforms are different in size, the risks platforms and investors are facing are also different. Because the purpose of regulation is not risk management, we divide platforms according to the size of reimbursement obligation and fiduciary duty. On the base of classification, we analyze the risks and regulation for financing platforms.Second, financing Internet finance make the monetary policy failure,and diminish the power about monetary control of the monetary authorities.Financial innovation create many new financial products. And the new financial products have greatly improved liquidity, and the conversion between different forms is much easier, with the support of Internet technology. The author founds that different financial products have different liquidity: some financing Internet financial products can realize T+ 0 withdrawal, therefore they have very strong liquidity, and some financing Internet financial products can only been hold to deadline, so they have very weak liquidity. And we know the direct judgment if one financial have monetary attribute is liquidity, so we can deduce financing Internet financial products have different monetary attributes. An the one hand Financing Internet financial products have different currencies attributes, on the other hand different Monetary attribute have an different influence on the money supply and money demand. Monetarism school argued that the relationship between monetary supply and the GNP is stable,so we can use money supply to carry out the Macroeconomic regulation and control. However, whether monetary statistics caliber can reflect real money supply is a precondition of the effective implementation of the quantitative monetary policy. So the different Monetary attribute of financing Internet financial products affect the effectiveness of the quantitative monetary policy intermediary goal by influencing the monetary statistics caliber. At the same time, with the rapid development of the financing Internet finance, the Proportion of it in social financing scale and broad money M2 is increasing, and the influence on currency supply and demand increases too, however the monetary authorities have no effective means to control it, so the financing Internet financial products with different currencies make the control ability of monetary authorities weaken, and monetary policy failure. Financing Internet financial products have monetary attributes, so we think Classify them according to their monetary attributes and put them to appropriate monetary level will provide a solution to the problem of monetary policy failure.Under this background, we think it is very important for solving problems and giving suggestions the regulatory authorities and monetary authorities some suggestions that analyses the risk characteristics of financing internet finance and the strength of monetary attribute of Financing Internet financial products, explore policy recommendations about the Internet financial financing.Based on the above studies, we think that the classification is an effective method to solve the problem of regulatory and monetary policy problems, but the existing classification is chaos, and not be able to help solve the problems. Therefore, firstly, we analyze the necessity of the new classification of financing Internet finance, including financing Internet financial platforms and financing Internet financial products; Secondly, We put forward that classifies the financing Internet financial platforms(intermediary-type and platform-type, and the intermediary-platform can be divided into asset management type, loan platform type and bank platform type) according to the business nature, liability or obligation, and classifies financing Internet financial products according to the strength of monetary attribute. Finally, we put forward some policy suggestions to solve above problems including two parts: first, applyiny classification regulation to financing Internet financial platforms according to the business, responsibility as well as the risk characteristics; second, putting forward suggestions on monetary policy according to different monetary attribute of financing Internet financial products.