The Choice of Financial Regulation Mode under Integration of Financial Industry
|School||Capital University of Economics|
|Keywords||financial regulation mode integration of financial industry institutional arrangement separate regulation unified regulation|
Since the 1980s, there has been a revolutionary and profound change in the field of international finance. Now integration of financial industry has been a worldwide dominant trend. With the change of financial system, a profound change must happen to the financial regulation mode.In recent years, our county’s financial pattern has changed a lot with the advance of financial deepening. Limit of separate operation is being broken through little by little. On the other hand, as far as the financial regulation is concerned, obviously the new financial instruments and institutions with the characters of integration of financial industry can’t be supervised effectively under the separate regulation mode. So it is a must in China that the present financial regulation mode be adjusted or reformed suitably. With regard to the choice of future financial regulation mode, we should establish and strengthen financial regulation authorities and systems concerned according to our specific national condition and developmental stages of integration of financial industry, using adequately foreign experience for reference. The financial regulation should gradually transit from institutional regulation to functional regulation, and from diverse regulation to single regulation by the principles of functional regulation, regulation information sharing and appointing regulation coordinator.This paper includes four parts. The first part employs the theory of new institutional economics to analyze the institution and shows the characters of the financial regulation mode as an institution. The second part discusses the most representative financial regulation modes under integration of financial industry in world, comparing their advantages and disadvantages. After theoretic analysis and international comparison of financial regulation modes, what follows is about domestic scene. The third part illustrates the inevitability of integration of financial industry in China, and then explains the necessity of adjusting and reforming the present financial regulation mode. The last part puts forward that the reform and development of the financial regulation mode follow certain principles and three practical steps in accordance with the course of integration of financial industry in China.