Research On The Legal Issues Concerning The Operation Of Local Financial Supervision Power

In recent years,with financial innovation and the continuous emergence of new financial formats,local financial risk incidents have occurred frequently,and the central financial regulatory agency with the "one Central Bank and two Regulator Commission" as the core is lacking in the supervision of local finance.Under the background,the local financial regulatory system has undergone a series of reforms,and gradually established a two-hierarchy regulatory system that "the central level is the dominant and the local level is the auxiliary".In the practice of the operation of local financial supervision power,there are still many legal problems,and the gradually established local financial supervision system still needs to be improved urgently.Analyzing the practice of the operation of local financial regulatory powers,the problems that hinder the effective operation of financial regulatory powers can be summarized into four aspects: incomplete regulatory powers,lack of regulatory coordination,lack of regulatory independence,and insufficient regulatory resources.Further analysis of the institutional background of China’s financial supervision system shows that the root of the problem is the disorder of power allocation,disorder of government competition,and the lack of restriction and supervision mechanisms.As a result,local financial supervision was interfered and abused,and the power was out of control.Therefore,We must control power from three aspects: the allocation,the implement and the supervision.It needs to be emphasized that the disorderly competition of local financial supervision hinders the effective operation of local financial supervision power,but the emergence of local finance is due to the desire of local government for financial resources.The role of government competition in the rapid economic and social development of China cannot be ignored.Therefore,it is not advisable to mechanically separate the financial development goals of local financial supervision.Therefore,to achieve effective control of power and promote the effective operation of local financial supervision powers,it is inseparable from the effective regulation of local financial supervision competition.At present,under the basic economic power structure of the central and local governments,if the goal of effective operation of local financial supervision power is achieved in a relatively short period of time.A feasible method is to regulate the operation of local financial supervision power in a way of institutional innovation through legal governance.Based on the control mechanism that effectively prevents the power of local financial supervision from being interfered and abused,strengthen the coordination and independence of local financial supervision,and ensure a good order of supervisory competition.Ultimately,a legal system for the effective operation of local financial supervision power will be constructed.