Research On Local Financial Regulatory Power In The View Of Central And Local Decentralization

China’s financial market has gradually shown the characteristics of multiple levels and forms in recent years,and new financial organizations such as small loan companies,financing guarantee companies have been developed rapidly.These local financial organizations engage in financial services through their own funds,investor’s funds or leverage.While promoting the development of local financial markets and meeting their investment needs,the instability behind those local financial organizations’ development has implications for the efficiency and security of financial operations.In the first part,through the comparative analysis of the existing local financial supervision regulations from the legislative purpose,scope of application,supervision and management,risk prevention,legal responsibility and other aspects,this article summarizes the three major difficulties faced by the local finance: first,the legitimacy of the source and content of the power is questioned;second,the scope of the local financial supervision is vague;third,the local financial supervision systems lack independence.The second part explores the essence of local financial supervision power from the theoretical logic and legal connotation.The essence of local financial supervision power is the division of financial supervision power between the central and local governments.The allocation of local financial supervision power cannot be clarified in an institutionalized form,and the power content cannot be structural because it is difficult to clarify the boundary of financial supervision power between central and local governments.The third part discusses the division of financial supervision power between central and local governments.First of all,local finance should refer to the local financial market,including the financial transaction subjects set up in a certain administrative area and mainly serving local residents and enterprises.Secondly,on the basis of clarifying the concept of local finance,it should adhere to the three principles:limited decentralization,effective supervision and power coordination.That is to say,under the premise of adhering to the central supervision,appropriate decentralization should be given to local governments,and whether local governments can achieve effective supervision and coordination with other government departments should be considered.In addition,in the specific classification criteria,factors such as geographical location,financial risk and business should be considered comprehensively.The fourth part discusses how to optimize the local financial supervision system.Firstly,we should improve the scientific allocation of power from the following aspects:adjusting the focus of supervision objectives,clarifying the source of local financial supervision power,relatively independent positioning of local financial supervision subject,and strengthening the behavior supervision;secondly,we should build the coordination and supervision mechanism to ensure the standardized operation of the power.