What are the basic principles of financial supervision?

1, the principle of law

The principle of supervision according to law, also known as the principle of legality, refers to the financial supervision must be carried out in accordance with the laws and regulations. The main body of supervision, supervision of duties and responsibilities, supervision measures, etc. by the financial supervision laws and regulations and relevant administrative laws and regulations, supervision activities should be carried out in accordance with the law.

2, the principle of openness and fairness

Regulatory activities should maximize transparency. At the same time, the regulatory authority shall enforce the law fairly, treat all financial market participants equally, and achieve substantive and procedural justice.

3. Principle of Efficiency

The principle of efficiency means that financial supervision should improve the overall efficiency of the financial system and should not suppress financial innovation and financial competition. At the same time, financial regulatory authorities rationally allocate and utilize regulatory resources to reduce costs and social expenditures, thus saving social public **** resources.

4. Principle of Independence

Banking supervisory and regulatory authorities and their personnel engaged in the management of supervision and management duties in accordance with the law, and are protected by law, and local governments, government departments at all levels, social organizations and individuals shall not interfere.

5, the principle of coordination

Regulation between the main body of responsibility, reasonable division of labor, and mutual cooperation. This can save regulatory costs and improve the efficiency of regulation.

Expanded Information:

The purpose of financial regulation:

(1) To maintain the order in the healthy operation of the financial industry, minimize risks in the banking industry, protect the interests of depositors and investors, and promote the healthy development of the banking industry and the economy.

(2) To ensure the need for fair and efficient disbursement of loans, thereby avoiding indiscriminate allocation of funds and preventing fraudulent activities or inappropriate risk transfer.

(3) Financial regulation can also go some way to avoiding over-concentration of loan disbursements in a particular industry.

(4) Bank failures are not only costly, but also spill over into other areas of the national economy. Financial regulation ensures a certain level of financial services and thus improves social welfare.

(5) The central bank transmits monetary policy to the rest of the national economy through monetary reserves and asset allocation. Financial regulation ensures the realization of the transmission mechanism of the bank in the implementation of monetary policy.

(6) Financial regulation can provide trading accounts that convey default risk information to financial markets.

Baidu Encyclopedia-Financial Regulation