The financial supervision departments in China include the Bank of China Insurance Regulatory Commission, the China Securities Regulatory Commission and the People's Bank of China. The management framework of "one line, three meetings" is implemented, and China Banking and Insurance Regulatory Commission is responsible for the supervision and management of deposit-taking financial institutions such as financial asset management companies, banks, trust and investment companies; China Securities Regulatory Commission is responsible for the centralized management of national futures and securities; The China Insurance Regulatory Commission is responsible for supervising the national insurance market; The People's Bank of China is mainly responsible for formulating monetary policy.

Financial supervision is a kind of restriction or control by the government on financial transaction subjects through specific institutions, such as the central bank and the Securities and Exchange Commission. In essence, it is a kind of government regulation behavior with specific connotation and characteristics. Financial supervision can be divided into financial supervision and financial management.

Financial supervision refers to the comprehensive and regular inspection and supervision of financial institutions by financial authorities to promote the steady operation and development of financial institutions according to law. Financial management refers to a series of activities such as leadership, organization, coordination and control of financial institutions and their business activities by financial authorities according to law.

Financial supervision is the general name of financial supervision and financial management. Throughout the world, all countries that implement the market economy system objectively have government control over the financial system.

Semantically, financial supervision refers to the comprehensive and regular inspection and supervision of financial institutions by financial authorities, so as to promote the steady operation and development of financial institutions according to law. Financial management refers to a series of activities such as leadership, organization, coordination and control of financial institutions and their business activities by financial authorities according to law.

Financial supervision can be divided into narrow sense and broad sense. In a narrow sense, financial supervision refers to the supervision and management of the whole financial industry (including financial institutions and financial services) by the central bank or other financial supervision authorities according to national laws and regulations. In addition to the above meanings, financial supervision in a broad sense also includes internal control and audit of financial institutions, supervision of self-regulatory organizations in the same industry and supervision of social intermediary organizations.

(1) Maintain the healthy operation order of the financial industry, minimize banking risks, safeguard the interests of depositors and investors, and promote the healthy development of the banking industry and economy.

(2) To ensure the need to issue loans fairly and effectively, so as to avoid indiscriminate allocation of funds and prevent fraudulent activities or inappropriate risk transfer.

(3) Financial supervision can also avoid excessive concentration of loans in a certain industry to a certain extent.

(4) Bank failure not only needs to pay a huge price, but also affects other areas of the national economy. Financial supervision can ensure that financial services reach a certain level, thus improving social welfare.

(5) The central bank transmits monetary policy to other areas of the national economy through monetary reserves and asset allocation. Financial supervision can ensure that the transmission mechanism of banks' monetary policy can be realized.

(6) Financial supervision can provide trading accounts and transmit default risk information to financial markets.