Preventive Measures Of Systematic Financial Risk In China

Preventing the occurrence of systemic financial risks is a fundamental task of financial work and an eternal theme of financial work.At present,it has become one of the three major battles for China to build a well-off society in an all-round way.Under the strong financial supervision policy,the prevention and control of China's systemic financial risks has achieved remarkable results,but the pressure of preventing systemic risks must not be underestimated.In particular,the large contraction of shadow banking in 2018 has brought tremendous pressure on the real economy,which is likely to cause secondary risk.At present,there are not many literature studies on the analysis of China's systemic financial risk prevention and control from the perspective of strong financial supervision.Since the prevention of systemic financial risks is the primary goal of China's comprehensive construction of a well-off society in 2020,the systematic financial risk research after strong financial supervision has great practical significance,which will help to provide experience and lessons for better prevention and control of systemic financial risks in the future.Given the fact that shadow banking is the main target of financial supervision,this paper intends to analyze the status quo and difficulties of China's systemic financial risks from the perspective of China's strong shadow banking supervision,and proposes preliminary regulatory recommendations.It aims to further enrich the theoretical understanding of systemic financial risk and the way of preventing and controlling the systemic risk according to China's national conditions.This article classifies shadow banking by reference to the"Notice of the General Office of the State Council on Strengthening the Supervision of Shadow Banking".According to the characteristics of shadow banking,it is divided into two dimensions,the shadow banking business holding financial licensing institutions and the credit intermediary organization without the financial license.For the shadow banking business holding financial license institutions,this paper focuses on the analysis of its financial risks,the status of strong supervision and the existing problems.The main problem at present is that the shadow banking business under the strong regulatory policy of "Guiding Opinions on Regulating Asset Management Business of Financial Institutions"has experienced a sharp decline,resulting in a year-on-year decrease in the scale of social financing.The shrinking scale of social financing has led to frequent corporate bond defaults and large-scale slowdowns in investment,which may further trigger real economic risks.For the credit intermediary organization without the financial license,this paper selects the P2P network lending platform with frequent risk outbreaks in 2018 as the main research object,and analyzes the current risk status,strong supervision status and current regulatory problems faced by P2P network lending platforms.The P2P network lending platform filing policy was forced to be postponed twice,and the government's credibility was questioned.Recently,the strong regulatory policy,"Opinions on Doing a Good Job in Classified Disposition and Risk Prevention of Online Lending Organizations"(Remediation Letter[2018]No.175,Hereinafter referred to as "No.175"),required the online lending platform to take institution exit as main direction.Although the strong supervision principle of "No.175" is conducive to the prevention and control of systemic financial risks,it still needs to be treated with caution in the actual implementation to prevent the strict risk clearance mechanism from causing market turmoil in the online lending industry and trigger secondary financial risks.Based on the current status and difficulties of China's shadow banking,this paper proposes the following regulatory recommendations for the prevention and control of systemic financial risks.On the one hand,we must pay attention to improving the dynamic balance between risk prevention and steady growth.First of all,we should pay attention to optimizing the risk release mechanism and grasping the policy supervision to prevent excessive impact on the real economy.Secondly,the blocked shadow bank capital demand should be cleared by other means,such as accelerating interest rate marketization and building multi-level direct financing market.Thirdly,it is necessary to strengthen the construction of financing service infrastructure to solve the problem of financing difficulties for SMEs,such as improving information asymmetry and insufficient credit of SMEs.On the other hand,we must pay attention(to optimizing the pre-and post-regulation of financial risks.Firstly,the core of pre-regulation is to require all financial institutions to hold financial licenses.Secondly,post-regulation should strengthen the implementation of policies and ensure that regulatory policies are strictly enforced to prevent risk accumulation.Thirdly,it is necessary improve the coordination function of the Financial Stability Development Committee to eliminate regulatory gaps and regulatory arbitrage and highlight functional supervision to effectively prevent and control systemic financial risks.