Financial Security: Financial Security in China

At present, China's financial security situation is still not optimistic, mainly in the following aspects: the illegal inflow and outflow of capital have had a negative impact on China's financial security.

Opening to the outside world has promoted the development of China's economic and financial internationalization. The increase of dependence on foreign countries shows that China's level of utilizing international resources and international markets has been greatly improved, and its ability to participate in international division of labor and international competition has been further enhanced, which has played an extremely important role in improving the overall level of China's national economy.

However, as a developing country, in the process of opening to the outside world, many factors have had a serious negative impact on China's financial security, among which the illegal inflow and outflow of capital are the most important manifestations. It will have a negative impact on China's normal financial order, increase the difficulty of macroeconomic regulation and control, reduce the effectiveness of monetary policy, easily cause financial bubbles and increase financial risks. Challenges to China's financial security after China's entry into WTO.

We should fully realize the pressure and influence of financial market opening to the outside world on China's financial industry. First, although the state-owned commercial bank system has many branches, it has not been fully commercialized, and it cannot compete with the powerful big banks in developed countries in terms of service quality, work efficiency, operating ability and technical conditions. Once a large number of foreign banks are allowed to enter and the restrictions on RMB business are relaxed, the four major state-owned commercial banks will face the serious problem of losing some high-quality customers. Second, under the condition of financial openness, the market interest rate will inevitably replace the official interest rate, and the current non-market exchange rate determination mechanism will also be tested. Thirdly, with the continuous opening of money market, capital market and foreign exchange market, the free flow of capital will bring many problems to China's economic and financial macro-control and financial supervision, and the inflow and outflow of a large number of short-term capital will pose a great threat to China's financial security. With the rapid development of global computer technology, online banking and online finance have become a reality. On the Internet, banks and customers can complete their daily business without meeting each other, eliminating the differences in time and region, changing the traditional financial business operation mode and improving the service quality and efficiency. But at the same time, we should also see that as an open Internet, its security is increasingly threatened from all sides. In recent years, the online banking system in many countries in the world has been attacked to varying degrees. These facts clearly tell us that the more high-tech, the more there is a hidden worry of interference or even paralysis.

China's online banking business has just started, and various risk prevention measures are still not perfect. Many important banking systems, such as online banking payment system, credit card system and settlement system, are in danger of being attacked and destroyed by uninvited guests at any time. We have introduced advanced network finance technology, but the supporting risk prevention system and safety early warning system need to be gradually combined with China's national conditions. During this period, the safety of funds is particularly important. Backward financial equipment and low degree of localization are the major hidden dangers of China's financial security.

First of all, most domestic e-banking platforms are imported from abroad, which is fundamentally unsafe. We may pay too much attention to the benefits and convenience brought by electronization, but we tend to overlook that most of the electronic platforms we use are imported from abroad. Because the source code of these platform software is not open, its risk prevention ability is unknown. Second, the core technologies of China's financial electronic equipment are mostly imported from abroad, which makes the foundation of financial security extremely fragile. In the process of developing financial electronization in China, the idea of "exchanging market for technology" was put forward, just like the process of equipment introduction in other industries. However, in the process of financial electronization, both the operating platform in the whole financial system and the core technologies such as electronic payment system are increasingly dependent on foreign technologies, which leads to the extremely fragile foundation of financial security in China. The reason for this consequence is that in the process of introducing financial equipment, consumer behavior has always been introduced, which is generally introduced directly by major banks and financial institutions, so they pay attention to consumer technology rather than R&D and equipment technology. Therefore, we have not supported our own financial equipment research and development and production strength like the automobile manufacturing industry. Financial supervision can not fully meet the needs of China's financial security.

Judging from the actual situation of China's economic and financial internationalization process, China's financial supervision ability can not fully meet the needs of opening up. There is still a big gap between the organization, talent team and technical means of financial supervision and the requirements of modern financial supervision. The financial supervision system and supervision level are not fully adapted to the needs of China's financial security. The construction of financial legal system does not fully meet the requirements of ensuring China's financial security.

Financial regulations are the legal basis for implementing financial supervision and ensuring financial security in China, and also the fundamental guarantee for the standardization and legalization of financial supervision. In recent years, China has promulgated a series of financial laws, such as China People's Bank Law, Commercial Bank Law, Insurance Law and Securities Law, which have played an active role in practice. However, the task of China's financial legislation is still very heavy, and it is obviously lagging behind in some aspects of legislation, which does not meet the requirements of China's financial reform and financial security. Judging from the financial practice of various countries, with the continuous development of global financial reform characterized by financial liberalization, internationalization and integration, countries pay more attention to control, supervision and scale in financial legislation. In the process of development, some emerging countries in Asia just didn't realize that effective supervision was emphasized on the basis of interest rate marketization and opening up domestic financial markets with legal means and strength, thus the whole national economy lacked the necessary "firewall" and exposed the serious defects of the financial legal system, especially the supervision laws and regulations. These defects were exposed when they were hit, which became the mechanism factors leading to the whole financial crisis. In the development of China, we must face up to this problem, strengthen financial legislation, realize effective financial supervision, avoid institutional risks and ensure financial security.