Chen Long: Banks Complain That Injustice Is A Misreading Of Internet Finance.

Less than p ago, the China Internet Finance Association, which was led by the people's Bank of China, has been approved by the State Council.

It is reported that the association was led by the central bank's law department, aiming at self-regulation of the Internet financial industry.

Compared with the Internet Finance Specialized Committee set up by the China payment clearing Association, the Internet Finance Association of China has a higher level.

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< p > in addition, Yan Qingmin, vice chairman of the China Banking Regulatory Commission, said at the annual meeting of the Boao forum for Asia 2014, in order to strengthen the development, regulation and supervision of Internet finance, the State Council recently made a division of labor in the supervision of Internet finance. It has just decided that the CBRC will take the lead in undertaking research on P2P supervision.

At the same time, Yan Qingmin also said that due to the start of the relevant research, there is no specific plan.

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< p > in fact, in the past month, various actions of regulators in the Internet field have been common, and all these are aimed at braking the Internet finance which is brutally growing.

As a rapidly developing industry, Internet finance is gradually stepping into the regulatory era under the action of regulators.

For Internet finance, how to balance the relationship between regulation, risk control and innovation? Reporters at the Boao forum for Asia 2014 annual conference interviewed Dr. Chen Long, finance Dean of University of Toronto, vice president of Yangtze River Business School, finance professor, < a href= "http://www.91se91.com/news/index_cj.asp" > < < /a > > three.

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< p > < strong > reporter: at present, both the central bank and the CBRC have related actions to indicate their intention of "a href=" http://www.91se91.com/news/index_cj.asp > supervision "/a".

Why do we need to regulate Internet Finance? How can we balance the relationship between regulation and innovation? < /strong > < /p >

< p > Chen Long: now, < a href= "http://www.91se91.com/news/index_cj.asp" > Internet < /a > supervision mainly lies in "cooperative supervision". The SFC, the CBRC and the central bank should work together.

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< p > how to balance is a dilemma.

If you understand the history of the United States, you can see why Greenspan is late.

Greenspan used to be the chairman of the Federal Reserve, and he always wanted to promote innovation. So when the financial innovation of the United States came out, he also thought that the market should have the final say.

But now we look back at the situation after 2008. There are really many points worth reflecting.

For example, why did the five largest investment banks in the United States fall back to three and only two remained independent?

A lot of bank failures are actually risks.

You said they would not think for themselves, of course, they wanted to think for themselves, but from the nature of Finance I just talked about, the agencies selling products are short-sighted, because human beings are short-sighted, so I think we should combine incentives and innovation with this risk.

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< p > < strong > reporter: how to define appropriate supervision? < /strong > /p >

< p > Chen Long: we must have rational supervision and not supervise it for risk.

Financial products are all risky, and regulation may kill their development, but they can not be totally ignored. Because this will become a hotbed of financial risk and how to make proper supervision of landing. I think it is not a good innovation to analyze the nature of financial innovation. What are the benefits to society? How big are the risks and benefits? Let's assess how much risk we can tolerate, and who should be related to regulation?

Ma Yun said, "the balance treasure must be carried on. I am the user experience supremacy."

The bank said, "I am the user risk top."

Without frame, communication efficiency will be very low.

As a regulator, the framework should be put together to make a balance.

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P: < strong > reporter: what does the Internet Financial Association's landing mean for industry supervision? How can we regulate Internet banking and banking in a fair competition environment? How can we ensure fair competition in finance? < /strong > /p >

< p > Chen Long: banks complain that unfair competition is a misreading of Internet finance.

For example, the balance of treasure, as a monetary fund, it has nothing to do with the Internet.

Since 2004, the SFC has started to supervise the fund. The IMF is not a bank. It does not need reserves. There are very strict restrictions on investment targets.

Do you think Internet Co has no regulation? Actually, it is also regulated.

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< p > P2P is different. It needs timely supervision.

Because P2P is a product of high risk and high yield, like small loans, anyone can do this, that is, low access threshold.

Therefore, investors can be provided in terms of information disclosure and capital and so on. This is the essence of finance.

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< p > < strong > reporter: we all say that Internet finance is the innovation of the industry. What do you think of it? < /strong > /p >

< p > Chen Long: what is good innovation? If we do not make this standard clear, it is easy to be manipulated by some interest groups.

Because innovation does not break the existing competition pattern, it is only for risk supervision, it is easy to deviate.

Whether innovation is conducive to economic development has two criteria. First, whether it can promote economic growth, and whether social welfare can be improved by two.

I think we should look at every innovation from these two angles.

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< p > for example, P2P and balance treasure are two different financial innovations.

Why do we say so? Let's first look at the nature of P2P.

First of all, P2P is a channel product. The innovation of Internet products can reduce the cost of financing.

Secondly, P2P connects the borrowers and borrowers through the network platform. This does not change the essence of finance, and belongs to a high-risk, high-yield financial product.

There is a big uncertainty about this product, that is, it needs an intermediary to make pricing and do wind control.

So the impact on finance depends on the uncertainty of the product.

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