Research On The Functional Orientation And Optimization Path Of Local Financial Supervision And Administration

Since the 19 th National Congress of the Communist Party of China,we have attached great importance to deepening the reform of institutions.We are committed to building a systematic,scientific,standardized and efficient functional system of Party and state institutions,and comprehensively improving the national governance capacity and level.In particular,we are committed to deepen the reform of the financial system,improve the financial supervision system,and modernize the financial governance system.China’s traditional financial supervision is a top-down vertical supervision model built by “one central bank and two commission”(the People’s Bank of China,China Securities Regulatory Commission and China Banking and Insurance Regulatory Commission).But the traditional supervision model can not achieve full coverage of regulation with the development of emerging finance.Local financial offices(administration)have been gradually established to take charge of local financial supervision in order to fill the gap of financial supervision in the “one central bank and two commission” and improve the government’s governance ability.Especially since the institutional reform in 2018,all provinces(municipalities directly under the central government)intensified the territorial management responsibility of the government in the field of financial supervision.They expanded the functions of local financial offices(administration)to make supervision more in place and governance more effective.However,in the process of reform and development of financial supervision and administration,there are still some problems in the functionl orientation of local financial offices(administration),especially municipal financial offices(administration),such as inadequate adaptability,inappropriate powers and responsibilities and so on.This makes it unable to effectively achieve the goal of promoting the development of local financial markets and achieving financial stability.Therefore,it is particularly important to optimize the functional orientation of local financial offices(administration).Zigong Financial Administration is the first local financial supervision administration in Sichuan Province with relatively perfect staffing and functional structure.But there are still some problems of poor financial supervision effect and weak governance efficiency due to poor functional positioning.In particular,the target assessment of Zigong Financial Administration in recent three years is low-ranking in Zigong.Therefore,the study on the functional orientation and optimization path of Zigong Financial Administration is of great significance to improve the financial supervision efficiency and government governance ability of Zigong,and also has a strong reference significance for the functional orientation and optimization path of other local financial supervision administration.Based on Parsons ’ structural functionalism theory,this paper studies the functional orientation and optimization path of local financial supervision and administration by using the method of case analysis and taking Zigong Financial Administration as an example.Firstly,according to the functional analysis framework in Parsons’ structural functionalism theory,this paper analyzes the current situation of the functional orientation of Zigong Financial Administration from four aspects: Adaptation,Goal attainment,Integration and Latency pattern maintenance(“AGIL”).Secondly,it point out some problems of the functional orientation under the “ AGIL ” model.Then,It analyzes the reasons for the problems existing in the functional orientation.Lastly,it point out the suggestions to optimize the functional orientation of Zigong Financial Administration.Through the study of the functional orientation,we can finds that there are four problems.Firstly,Because of the lack of adaptability,it failed to effectively make up for the supervision gap.There is not only a blind spot in the supervision of some emerging financial institutions,but also a lack of ability to assist in the supervision of traditional securities;Secondly,its goal is not achieved well.The goal of financial risk resolution in traditional fields such as banking,securities and insurance can not be effectively achieved;Thirdly,the ability to integrate resources is not strong.Its ability to integrate financial supervision information and financial development information is insufficient,it is difficult to meet the needs of information quality;Fourthly,the ability to maintain the model is not enough,and administration maintenance is poor.The main reasons are: its supervision function is not empowered enough,resulting in its failure to adapt to the development of the financial environment;the mismatch between its functions and power makes it difficult to achieve some goals;the lack of the function of integrating financial information makes it difficult to obtain external information;due to the lack of assessment and application functions of financial talents,the value recognition is low.Therefore,this paper gives four optimization paths of function orientation in order to improve the supervision efficiency and governance ability.Firstly,relevant authorities should be given to fill the supervision gap,including the power to supervise emerging financial institutions and the power to assist Sichuan Regulatory Bureau of the China Securities Regulatory Commission.Secondly,it needs to adjust risk mitigation functions.It needs to follow the principle of “the one who supervises is responsible”,and clarify the responsibility of assisting in risk mitigation only to achieve goals.Thirdly,the function of integrating financial information should be increased,it should have the power to integrate information from local branches of the People’s Bank of China and the China Banking and Insurance Regulatory Commission and other government departments,so as to promote the comprehensive knowledge and effective use of information.Fourthly,clarify the assessment and application functions of financial talents to maintain the stable operation of the organization.