Research On Supervision Dilemma And Countermeasure Of Private Finance In Hubei Province

As an important supplement to formal finance,private finance in Hubei Province alleviates the financing needs of small and medium-sized economic entities to a certain extent and plays an irreplaceable role in the economic development of the whole province.At the same time,private finance is also a double-edged sword,because of its inherent geographical,complexity,concealment and other characteristics,it is very easy to breed illegal phenomena.With the rapid development of Internet finance,private finance presents new forms of change,involving and influencing more than before.However,influenced by the macro-policy of financial repression for a long time in China,local governments generally hold a wait-and-see attitude towards the development of private finance.Most of them adopt measures of "pre-examination and approval,post-attack",lack of effective supervision of private finance,which is very unfavorable to the healthy development of private finance in the long run.Even,once the risk is difficult to resolve,it will destroy the image of the local government in power,and seriously hinder the government to guide the standardization process of private finance.The report of the Nineteenth National Congress of the Communist Party of China proposed that we should deepen the reform of the financial system,enhance the economic capacity of financial service entities,improve the financial supervision system,and keep the bottom line of avoiding systemic financial risks.The 2018 Central Economic Work Conference once again emphasized that we should take precautions against and resolve major risks,focusing on the prevention and control of financial risks.The prevention and control of financial risk is the first of the three major battles,that is,to put the prevention and control of financial risk in a more important position.At this point,it has become a serious and urgent task for local governments to strengthen the effective supervision of private finance and standardize the orderly development of private finance.As a major province in the central part of China,Hubei has undertaken major national development strategies including the "The Belt and Road",the Yangtze River economic belt,the rise of central China,and the urban agglomeration of the middle reaches of the Yangtze River.It is also implementing a number of national key reform pilot projects,including the National Central City,the comprehensive innovation reform pilot area,the Hubei free trade area,the science and technology finance reform and innovation experimental area,and is facing challenges.Important historical opportunities for economic and social development.Financial activity is economic activity;financial stability is economic stability.It is imperative for Hubei Province to strengthen the supervision of private finance.This paper tries to find a way to supervise the private finance in accordance with the situation of Hubei Province by analyzing the current situation and dilemma of supervision of the private finance in Hubei Province.