? Development process Generally speaking, the reform and development of China’s financial supervision can be divided into the following five stages:

(1) Initial stage:

The Absence of Financial Regulation (1949-1978). Before and after the founding of New China in 1949, the People's Bank of China, Agricultural Bank of China and China Construction Bank were established one after another. Since then, under the planned economic system, several banks have experienced many mergers and spin-offs with the adjustment of functions. This economic system background and financial organizational structure form the basis for the development of China's financial industry and financial supervision, and have gradually formed a unique supervision system under the planned economic system.

At that time, China's financial market was completely dominated by banks. Its main business activities were planned appropriations, loans and deposits, and basically did not involve securities, insurance, foreign exchange and other businesses. At that time, the People's Bank of China integrated multiple functions such as monetary policy, financial operations, and organizational management. Its supervision of the financial system was also of a planning and administrative nature.

It can be said that under the planned economic system at that time, the modern concept of "financial supervision" did not actually exist, and the operation and management mechanism of the financial system were also completely different from those of the market economy.

Therefore, to be precise, there was no financial regulatory system in the Chinese financial market at that time, only a financial management system. Of course, under the conditions of the economic system and financial development level at that time, such a centralized financial management system with the People's Bank of China as the single subject ensured the unity and efficiency of the financial system of a brand-new country at that time, and also made it possible for the central bank to be the central bank in the future. Supervision provides a certain reserve of experience, organizational structure and personnel for leading financial supervision.

(2) Transition stage:

The establishment of financial supervision (1979-1991). China began to implement the policy of reform and opening up at the end of 1978 and gradually established a socialist market economic system. This has greatly promoted the development of China's financial industry and put forward higher requirements for financial market systems and mechanisms. The most prominent change at that time was that the government successively restored or established several major professional banks and financial institutions in the insurance, trust, securities and other industries, and promulgated some administrative rules and regulations to regulate their business activities.

At this stage, as professional financial institutions became independent from the People's Bank of China, the regulation of their business behavior also changed from internal management to external supervision. The People's Bank of China was officially established as the central bank and a relatively independent, comprehensive and unified regulatory agency. China's financial regulatory system and mechanism were formally established.

However, this kind of supervision still mainly relies on administrative regulations and direct instruction management. The status and power of each subject in this regulatory system rely on the administrative system, rather than being formed by clear legal authorization.

(3) Development stage:

The establishment of separate supervision (1992-2003). The Fourteenth National Congress of the Communist Party of China held in 1992 clearly stated that the goal of China's economic system reform is to establish a socialist market economic system, which laid the foundation for China's financial system reform and gave birth to the China Securities Regulatory Commission, the former China Insurance Regulatory Commission and Formerly the Banking Regulatory Commission and other professional regulatory agencies. Basic laws such as the Securities Law, Insurance Law, and Banking Law were born one after another, and a separate supervision system was gradually established.

At this stage, a separate supervision system based on the China Securities Regulatory Commission, the former China Insurance Regulatory Commission, and the former China Banking Regulatory Commission was gradually formed. After the People's Bank of China has completely separated its daily and specific financial regulatory powers, it is mainly responsible for monetary policy, as well as basic systems and financial infrastructure construction such as payment and settlement, foreign exchange management, credit reporting and anti-money laundering, and is responsible for maintaining financial market order and market stability. Play a leading role. Financial supervision has entered the stage of legalization, and the basic financial legal system has been established and improved.

(4) Improvement stage:

Improvement of institutional supervision (2004-2017). Since 2004, China's financial sector supervision system has been further consolidated and improved, and regulatory coordination and international cooperation have also made new developments. After the global financial crisis, attempts to strengthen macro-prudential supervision and other reform explorations are also gradually advancing. China’s financial regulatory reform and development at this stage is closely related to meeting the challenges of financial globalization, financial innovation, integrated operations and financial crises.

During this stage, the "one bank and three commissions" separate supervision system has been further developed and improved in the following aspects:

First, the legal system has been further improved, and the Securities Law "Company Law" and many other laws have been revised.

The second is to strengthen regulatory law enforcement and enrich regulatory content, standardize on-site inspections, administrative licensing, administrative penalties, administrative reconsideration and other behaviors, and strengthen supervision of financial innovation and some cross-financial operations.

Third, coordination and cooperation among financial regulatory agencies have been strengthened, and a joint meeting system has been established between regulatory agencies.

Fourth, prudential supervision and functional supervision have been put on the regulatory reform agenda of regulatory authorities.

(5) Transformation stage:

Attempts at functional supervision (2018 to present).

In order to effectively prevent systemic financial risks and further strengthen financial regulatory coordination, the Fifth National Financial Work Conference held in 2017 proposed the establishment of the "State Council Financial Stability and Development Committee" as a permanent executive agency to maintain national financial security and coordinate financial regulatory policies. interdepartmental and interdepartmental coordination with other relevant policies.

At the same time, in accordance with the requirements of the State Council’s institutional reform plan, the former China Banking Regulatory Commission and the former China Insurance Regulatory Commission were merged. This is the most effective and direct method to coordinate the supervision of the banking and insurance fields. It also adapts to a certain extent. New needs for the development of the financial industry. In addition, retaining the relative independence of the China Securities Regulatory Commission will also further encourage and support the development of the direct financing market.

Under the new "one bank and two meetings" framework, the People's Bank of China's "dual-pillar regulatory framework of monetary policy and macro-prudential policy" will be clearer, and it will be more responsible for macro-prudential management, financial holding companies and Systemically important institutions, financial infrastructure construction, basic legal and regulatory systems, and full-caliber statistical analysis.

The local financial regulatory bureaus established in various places will also be responsible for the supervision of "7+4" institutions and some emerging financial formats. The reform direction takes into account the path dependence factors of the financial regulatory system and the development of China's financial market. "Three layers + twin peaks" will be the future direction of China's financial regulatory framework.

The "three layers" refers to the top layer being the Financial Stability and Development Commission of the State Council, the middle layer being specific financial regulatory agencies, and the bottom layer being the corresponding local regulatory authorities; "double peaks" refers to the overall financial supervision Within the organizational system, specific regulatory functions are divided into prudential regulatory agencies and conduct regulatory agencies.