Study on Local Financial Supervision Right and Regulation Countermeasures

龐藝超 北京工商大學嘉華學院 101118

Abstract: Under the modern market economy environment,the financial industry has become more and more important in the national economy. To ensure the healthy and effective operation of the financial order and use of monetary resources in the economic society can be fully and efficiently, the free allocation of social resources will gradually become more reasonable. From the perspective of government financial supervision, this paper is based on the progress and problems of local government financial supervision, how to improve the financial supervision of local governments, how to better play the role of supervision, management and service of the government financial supervision department.

Keywords: financial supervision; government financial supervision; financial innovation; financial risk

I. The Necessity of Local Government Financial Supervision

The GDP represents the level of economic development of a country or region, usually with domestic production. The growth rate of the total value reflects the speed of economic development and is one of the important indicators of national economic accounting. The GDP of local governments in China has maintained a relatively stable growth since 1990, and the contribution of the financial industry is essential. The author aims to explain the degree of influence of the development of local government financial industry on GDP by analysing the correlation between the GDP of local governments and the scale of development of local government financial industry. The scale of development of financial industry should cover banks and insurance. Companies, securities companies, microfinance companies and other financial institutions, because the size of the banks in these financial institutions accounted for the vast majority, while other institutions do not have complete statistics for the time being, so in the analysis, the author chooses the bank deposits Balance, loan balance to represent local government finance The scale of development.

II. Problems and Causes of Local Government Financial Supervision

At present, China's economy is declining. Many small and medium-sized enterprises have problems such as insufficient funds and difficulties in financing. In this situation, various new types of financial institutions of local governments have emerged, such as microfinance companies, financing guarantee institutions, and private capital. The institutions such as the management agencies and the mutual aid professional cooperatives have met the needs of social funds to a certain extent. However, the supervision of these new financial institutions has been delayed, which is fundamental because the government's financial supervision is based on the documents of the local government or the relevant regulatory authorities,rather than administrative regulations, facing the new situation.New problems that arise are often in an embarrassing situation that cannot be relied upon. In the process of supervision,the local government financial work supervision bureau has difficulty in exercising effective penalties for illegal acts due to the existence of blanks in law enforcement. Not only that, but in the context of deepening reforms, given the lack of necessary legal basis, it is difficult to continue the traditional financial supervision. For example, in response to the request for national decentralization and decentralization, the State Administration for Industry and Commerce issued a notice on February 19,2018, officially suspending the annual enterprise inspection system since March 1, 2018. This means that the enterprise industrial and commercial inspection system will officially bid farewell to the historical stage. The local government financial supervision bureau can no longer use the means of industrial and commercial inspections to supervise industrial and commercial enterprises.

III. Suggestions on Improving the Financial Supervision of Local Governments

The Regulations on the Administration of Civil Financing in Wenzhou and the Regulations were officially implemented on March 1, 2014. The implementation of these regulations provides a legal basis for Wenzhou to prevent and control financial risks and regulate private financing. It also marks China. The birth of the first financial local regulations. As of the end of January 2017, Chinese local governments has not promulgated any regulations on financial work. In the daily financial management and financial supervision, it is mainly based on the Shandong Local Finance Regulations, which was officially implemented on July 1, 2016. Prior to this, the work of the Dezhou Local Financial Supervision Administration was mainly based on the relevant administrative orders, notices,opinions, etc. of the Dezhou Municipal Government. It was inconsistent with the national policy of "ruling the country according to law". It has changed since the introduction of the regulations. In the past, the financial supervision work could not be relied upon. The Regulations consists of six chapters and 58 articles. It provides detailed regulations on financial services,financial development, financial supervision and corresponding legal responsibilities in Shandong Province. It has played a positive role in regulating the stable development of the financial industry and reducing financial risks.