Financial Regulatory System Will Reform "One Line, Three Meetings" May Merge

Over a period of time, China's financial regulatory system will be pformed, and rumors of "one line, three meetings" may merge.

Chi Fulin, the president of the National Committee for the National Committee of the Chinese Political Consultative Conference (CPPCC) and the president of the China (Hainan) reform and Development Institute, proposed to "establish the State Administration of financial supervision as soon as possible". He is hoping to have new regulatory institutions to realize a new financial supervision system of "unified leadership, hierarchical responsibility and combination of bars".

The current financial supervision system in China is that the power of financial supervision is concentrated in the central government, and the financial authorities and relevant organs perform financial supervision functions separately. That is, the Banking Regulatory Commission will supervise the banks, the Securities Regulatory Commission, and the insurance regulatory agency, and the three will conduct separate supervision. The people's Bank of China is at the core position. This "one line, three meetings" pattern seems to have strict division of labor and high management efficiency.

From the past pattern, banks, securities and insurance have covered all the financial and derivative industries in China, but with the acceleration of global economic integration and the rapid development of financial innovation, the new financial industry has emerged, and the financial market has been different from before.

From the perspective of some new financial events that have occurred, the CBRC, the SFC, the CIRC and the central bank do not have a regulatory authority to have the right to deal with these matters. Supervision, conflicts, duplication of regulations, administrative conflicts and so on often occur. This also leads to a lot of innovative finance being able to wander on the edge of the law. For some financial offences, many regulators can only "remind" investors, but can not supervise and investigate them.

Under the background of financial security and financial efficiency, the efficiency of financial supervision of "one line, three meetings" has not been able to keep pace with the times. The decentralization of regulatory power has led to the emergence of regulatory vacuum, and the reform of financial regulatory system is imperative.

Considering the overall situation, financial supervision needs to be changed from separate supervision to comprehensive regulation, otherwise the effectiveness of regulation will be greatly reduced.

Comprehensive supervision does not mean that "one line, three meetings" is bound to merge, but to integrate.

On the whole, the merger of "one line, three meetings" is basically impossible, because that will make the new regulatory agencies more complicated, and the matters that need to be coordinated and handled in the organization will be more complicated. The structure of the Department may form a situation of "replacing the soup without dressing up", and the overall efficiency of financial supervision will not necessarily improve.

In the process of carrying out communication and cooperation among financial institutions, we need to raise the concept of financial supervision at the same time. We should strictly restrict the operation and operation of financial institutions, pform the direction of promoting financial industry competition and promote financial mixed operation.

The upgrading of the concept will inevitably generate a lot of financial innovation, which can make the financial regulatory agencies take precautions, detect regulatory vacuum ahead of time, implement supervision in advance and prevent gray areas.

In addition, supervision can not only be afterwards supervision, but to achieve ahead of schedule.

It will be resolved before the risk arises.

For all financial sectors,

All departments need to monitor them to monitor all kinds of risks.

In addition, the central bank also needs to cooperate with various regulatory bodies, trade associations and local regulatory authorities to formulate a series of contingency plans for risk.

In addition to regulation, financial institutions need to do well in their own risk control and report regularly, such as information disclosure, internal management, bad rate and bad debts.

The more complex the situation is, the more needs to be strengthened.

"Independence" and "one line" integrity, increase the investigation and punishment of the violation of traditional financial institutions; in addition, "one line and three meetings" need to restructure the internal structure, strengthen the internal communication of "three meetings" without affecting the independence of each association, so as to cope with the financial industry of cross business, mixed operation and financial innovation.

The central bank needs to drive the "three sessions" to participate in cross-border financial supervision cooperation, and extensively carry out bilateral and multilateral cooperation with relevant countries' regulatory bodies.

On the one hand, China can learn effective international regulatory experience and specific methods from international exchanges and cooperation; on the other hand, China can cooperate with other countries in combating international financial crimes, while preventing international financial fraud and criminal syndicates from entering China to commit illegal practices.

The reason for this is that the current financial supervision system still lacks effective monitoring, evaluation, early warning and prevention system. After that, Zhu Geliang often happens, and although the financial crime group has lost its heart, many investors are unable to take out the money. The risk and panic have already been formed, which is not conducive to defusing financial risks.

On the other hand, the financial offenders' cost of crime is relatively low, which also leads to regulatory difficulties.