Research On Legal Issues Of Local Financial Supervision

In recent years,a variety of private lending institutions and Internet financial platforms have emerged one after another,and local financial institutions have grown rapidly in number and innovated constantly in form,posing a huge challenge to the central supervision ability.Under this form,the decentralization of supervision has become an irresistible trend.In order to realize the effective supervision of local finance,the central government has confirmed the responsibility of risk disposal of local governments through various administrative decisions and orders,and divided the supervision power of 7+4 financial organizations and places to local financial regulators.Local governments have also introduced financial regulations and regulations one after another to safeguard the exercise of local financial supervision power.Fundamentally,these measures solve the problem of how to rationally allocate the supervision power between the central and local governments.However,it is obvious that the central and local authorities do not have a systematic legislative plan to solve this problem.From the central level,various administrative decisions and orders have solved some urgent problems of local financial supervision,but also caused the situation of unclear allocation of central and local regulatory power and unfavorable coordination of regulatory machinery.At the local level,the legislative process in the provinces is not smooth and many problems have emerged.By comparing the local financial supervision laws and regulations of 10 provinces and cities such as Sichuan and Shanghai,we can find that there are mainly four kinds of legal problems in the local financial supervision in China.First,the legitimacy of the regulatory subject status of the local government is in doubt,and the exercise of regulatory power lacks legal basis.Second,the central government overuses administrative normative documents to authorize local supervision,which makes the allocation of central and local supervision power lack of systematization and stability.Moreover,these normative documents limit local financial supervision power to a very small scope,making it difficult to deal with the regulatory problems raised by local finance.Third,the local financial supervision lacks the content of power restriction,which is manifested as the supervision law enforcement without principle guidance,the lack of procedural constraints and the lack of legal sanction basis for illegal supervision.Fourth,the coordination mechanism of local financial supervision is not perfect,and the coordination mechanism between central and local governments and between local governments needs to be improved.Finally,combining with the practice of local regulatory legislation in our country,draw lessons from the United States,Germany and Canada local financial supervision system,put forward the solution for the four types of legal issues: first,through legislation and legal explanation officially awarded local government supervision power,and speed up the process of national local regulation law legislation,makes local financial regulation subject eligibility,according to the law enforcement;Secondly,in terms of specific enactment of laws,the supervision scope of central and local authorities should be clearly distinguished.For some local financial organizations with particularity or importance,the supervision of them should still be dominated by the central authorities,while the local authorities should carry out auxiliary functions.Thirdly,in the local financial supervision legislation,the regulation of the exercise principle of supervision power should be added,and the regulation of supervision procedure and supervision liability should be further detailed,so as to effectively restrict the abuse of supervision power.Finally,the coordination between central and local supervision should be solved by improving the local discussion and coordination mechanism of the Financial Stability Commission,and the supervision cooperation between local governments should be promoted by establishing a regional supervision and coordination mechanism.