How to improve China's financial regulatory mechanism.

Answer: Improvement of China's financial regulatory mechanism should start from the following aspects:

(1) Update the concept of financial regulation. In the background of the world financial globalization and conglomeration trend is becoming more and more obvious, China's traditional financial regulatory concept should be from strict restrictions on the operation of the business and business practices of financial institutions to the promotion of competition in the financial industry, to promote the direction of financial mixed operation, from restricting the merger of financial institutions to encourage financial institutions to join forces with each other. In the course of the transformation from financial sector management to mixed operation, many financial innovations are bound to emerge, so the financial regulatory authorities should make early preparations for a rainy day.

(2) Shift the center of gravity of financial supervision. The center of gravity of China's financial supervision should be shifted from compliance supervision to both compliance and risk-based supervision. From the development trend of the international financial industry, the mixed operation of the financial situation has broken the boundaries of the relevant laws and regulations, in this context the center of gravity of financial supervision should be shifted from compliance to the control of business risks.

(3) Improvement of financial supervision. The focus in this regard is to realize the change from static to dynamic supervision, always pay attention to, control, prevent and defuse the risks of financial institutions. Focus on ex-ante prevention and risk resolution at all times; encourage financial institutions to improve their internal control systems, raise their awareness of risk prevention and improve their overall risk prevention capabilities; and enhance information disclosure and strengthen market binding on financial institutions.

(4) Improve the financial regulatory system. First, the independence of the People's Bank of China, the CBRC, the SEC and the CIRC should be further strengthened, and the timely detection, investigation and punishment of non-compliant institutions should be stepped up; second, the established system of regular high-level meetings between regulators should be further strengthened, and consultations and coordination on major issues should be carried out on a frequent basis; and third, joint supervision should be carried out on cross-border areas of business and on financial groups engaging in mixed operations, and the establishment of a supervisory body information exchange and **** enjoyment mechanism among the regulators.

(5) Strengthening cooperation in cross-border financial supervision. Under the conditions of financial globalization, in order to effectively supervise the offshore business of domestic commercial banks as well as the financial business of foreign banks in their own countries, it has become more and more urgent and important to further strengthen cross-border regulatory cooperation.