What Is The Biggest Problem In Financial Markets?

After the financial crisis, the two major objectives of financial regulation were further clarified internationally: maintaining the steady operation of financial institutions, guarding against systemic financial risks, safeguarding fair market pactions and protecting the legitimate rights and interests of financial consumers.

On the one hand, we must maintain the steady operation of financial institutions and prevent systemic risks. On the other hand, we should earnestly protect the rights and interests of financial consumers. This should be our Shuangfeng supervision.

In the past, China's financial regulation has some deviation in its target positioning, and the development and guidance of industries are also regarded as the potential objectives and responsibilities of supervision.

These two points are actually not conducive to economic development.

First of all, development is the result of the behavior of the main body of the market. The responsibility of supervision is to prevent systemic risks. Exposure of individual risks is inevitable in the development of the market.

Taking market development as the target value of regulators will produce conflict of roles, and it is difficult to adhere to the continuity of regulatory principles.

Regulatory authorities will relax regulation when they want to push forward market development, so there will be a conflict of roles in this regard.

The supervisor's report should be an assessment of the risk situation. The development of the industry should be the result of the financial statistics and the report of the industry association, and the development of the trade associations should be encouraged.

When regulators evaluate their work, it is more important to judge the potential risks and risks of the market.

If we talk about the development of the market, we should let more market players and industry associations make reports. Besides, there are more intermediary organizations and self-discipline development of trade associations in the market, which will make the market development have a more solid foundation and self-discipline basis.

Letting individual products and organizations release risks is a necessary measure to resolve systemic risks. Disposing of risks is the merit of regulation rather than dereliction of duty, so that rigid payment and serious market discipline can be broken.

We should overcome the business innovation of financial institutions.

The site consciousness should be coordinated and implemented according to the product's functions, and it can not avoid the definition of the product's nature and function for the sake of regulatory authority.

Now we are in the financial market.

Although there is a theoretical disagreement and a lack of unity in ideology and understanding, some of the problems are due to our sense of territory and fear that if a product is identified as a certain nature, the regulatory power of this product will fall into the hands of another regulator. This latent awareness of the site is also one of the reasons that prevent us from correctly understanding the legal relationship of financial products.

The biggest problem in financial market is rigid payment. As long as there is rigid payment in the financial market, it is impossible to have risk pricing, because risk pricing is based on the probability of risk exposure times.

When we consider the effectiveness of a regulatory measure, it does not mean that such a measure can make some industries develop faster, but it allows the industry to minimize risks in the process of development.

When you see these risks, how to properly handle these risks and properly handle risks are the achievements of regulators.

Properly handling risks is certainly not entirely without risk. Therefore, we must also uphold the idea that allowing financial products to default when they default, so that risks arise when risks arise, so that we can reduce small shocks and avoid large earthquakes, which is more beneficial to the healthy development of the market, and play a decisive role in the allocation of resources in the market, which is also conducive to the formation of the price of the financial market.

Secondly,

It is the driving force of market development and the behavior of market players to adapt to market demand.

The responsibility of regulation is to pay close attention to the market base of innovation and pay attention to the protection of investors.

Before the crisis, there were too many "self amusing" financial innovations. The lesson from the global financial crisis is that financial institutions create too many products for self service. The complexity of products makes it difficult for financial institutions to identify their risks, not to mention those investors.

Therefore, if a financial product is too complicated, it will be difficult for investors to accurately understand the risk.

How can he invest prudently when an investor can not understand where the risk is?

It can be seen that too complex financial products will become the curse of the future financial crisis.