The development of the theory of financial innovation and the evolution of the financial regulatory system

孙梓峰

Abstract：Since the late 1990s， the theory and practice of financial innovation have proved that financial risk is also a available resource， and there is also the problem of resource allocation risk. Market-based allocation of risk resources can directly save the use of social resources. The market-oriented allocation of financial risk has become an effective tool of financial supervision， and financial innovation has become an important means to ensure the effectiveness of financial supervision. To further strengthen the link between financial innovation and financial regulation， regulate and encourage the development of financial innovation.

Keywords： Financial innovation theory， financial supervision， institutional evolution

1.The deepening of financial market needs the orderly development of financial innovation

In order to promote the development of financial innovation theory and the evolution of financial supervision system， it is necessary to strengthen the construction of financial supervision system， so that the coordination and cooperation between the regulatory authorities， not only to encourage domestic enterprises to carry out financial innovation， but also to coordinate the ability of financial institutions and related innovations， effective control of the risks of financial institutions，  and in a  differentiated form to coordinate their financial innovation.

2.The beneficial impact of financial regulation on economic development

Financial regulation is not specifically for regulatory purposes， mainly to ensure the better development of the financial industry. China's capital market started late， the level of development is low， comprehensive governance is still in its infancy.  Therefore， conditions need to be created to expand new functions in the financial services and financial sectors to adapt to globalization， the complexity， integration and personalization of forms of financial innovation， and financial risk control has begun to evolve towards networking， integration and modelling.  At the same time， the implementation of the principle of "authorization， coordination， mutual assistance， and gradual rationalization" aims to speed up the activities and services of the financial industry in the market.

3.Conclusion

Continuous  financial theory innovation is an effective complement to financial supervision， which needs to combine market access， operation and exit with regulatory concepts， and reform must be carried out in strict accordance with the relevant concepts. Perfect  financial supervision should play a role in promoting market development，  and better regulate financial information through interest rate market regulation and other means， improve financial supervision and financial innovation as complementary relationship， and improve and accelerate financial innovation.

（北京工商大學嘉华学院  北京  101118）