Research On The Legal Regulation Of Vertical Power Distribution In China's Financial Supervision Reform

The reform of China's financial regulatory system is centered around the distribution of regulatory power(vertical dimension)between the central government and local governments.China's local financial supervision is inconsistent with the central financial supervision objectives,and it cannot effectively prevent financial risks.Therefore,regional risk fluctuations are frequent and frequent.For example,since 2014,many online lending platforms have run out of the crisis and seriously damage the legitimate rights and interests of financial consumers.At present,China has basically completed the reform of financial regulatory power distribution at the central government level and established a top-level regulatory framework.The vertical allocation of financial regulatory power is also an inevitable requirement for the effective exercise of financial regulatory power.The lack of financial rule of law is the key to the imbalance of the vertical allocation of China's financial regulatory power.At the central level,there is a lack of legal supply for financial supervision and decentralization;at the local level,there is an oversupply of government regulatory normative documents.Specifically,there are four problems in China's financial regulatory decentralization: First,the financial regulatory decentralization is blurred,and the local financial regulatory powers and responsibilities are unbalanced.The allocation of local financial regulatory power depends on administrative policies and lacks the coercive power and authority of the law.At the same time,the responsibility of local financial supervision and risk is not balanced,which greatly reduces the enthusiasm of local supervision.Second,the decentralization of the allocation of financial regulatory power and the disordered regulatory resources.Local financial supervision has many political exits,lack of regulatory means,and unbalanced regulatory resource allocation.Third,the financial supervision powers are multiple,and local financial supervision is difficult to be prudent.Local financial regulatory agencies assume the dual functions of supervision and service,and cannot independently exercise financial supervision power,which greatly reduces financial supervision.Fourth,fragmentation of regulatory support measures: it is difficult to form a joint force in the allocation of local financial regulatory power.There is no effective information sharing mechanism and financial supervision and cooperationmechanism between financial regulators,and risk prevention cannot be effectively carried out.At present,Shandong,Hebei,and Sichuan provinces have successively passed unified local financial supervision regulations.Based on international perspective and local experience,China's financial supervision vertical power distribution reform needs to strengthen and improve financial legislation from the aspects of power distribution,entity system and procedural guarantee.The vertical distribution of financial supervision should insist that the central government is the mainstay of financial supervision,local supervision as a useful supplement,clear rights and responsibilities,and self-responsibility,thus rationalizing the functions and responsibilities of the central-local financial regulatory authorities,and finally clarifying the central-local financial regulatory agencies.Establishing information sharing and regulatory coordination mechanisms to create a dynamic financial judicial prevention system is also a top priority for strengthening financial supervision and preventing systematic risks.