Research on Principles and Models of Internet Finance Regulation in China

Xi Zhou
2016 Proceedings of the 2016 4th International Education, Economics, Social Science, Arts, Sports and Management Engineering Conference (IEESASM 2016)   unpublished
In recent years, the rapid rise of internet finance has promoted the development of the finance in China. As a useful complement to the financial system and the exploration of financial innovation, internet finance has put forward new challenges to financial regulation. This paper firstly gives the concept of internet finance, and then analyzes the principles and patterns of internet financial regulation to provide some references for the healthy development of internet finance in China.
more » ... of Internet Finance Internet finance refers to the new financial business model which applies the internet technology and information technology to achieve financial intermediation, payment, investment and information intermediary services by the traditional financial institutions and internet companies. Internet finance is not a simple combination of the internet and the financial industry. It is the new model and new business generated naturally by the technology of security, mobile and other network technology. Internet finance is a combination of traditional financial industry and Internet technology emerging areas. In recent years, China's internet development speed is very fast, which also led to the other industry change in many industries rely on the platform of the Internet, in a certain industry of Internet financial reform the produce is an inevitable trend in the development of the Internet. Internet financial market is conducive to improving the living standards of the masses. However, in the process of the development of internet finance, due to factors such as network technology, often some of the traditional financial fields to participants in the internet financial cause certain risks and losses. As is known to all, the Internet financial threshold is very low, for investors and lenders not very strict review system. In order to make the Internet financial health and stable development, to the financial market brings more convenience. We need to strengthen internet finance supervision in the process of supervision must abide the actual situation of Internet finance. We should grasp certain regulatory principles in order to adapt to the internet financial development trend to realize a better internet finance development. Regulation Principles of Internet Finance Principle of Moderate Regulation. Moderate regulation refers to the effective and limited supervision of financial activities, which is under the premise of respecting the self-regulation of the market. In order to meet the requirements of the appropriate regulatory, regulators should be to respect the law of financial market. Should not be contrary to the market force; try to avoid direct microscopic control. Moderate supervision is a trend of the current financial regulation, Internet banking as a kind of financial innovation. Appropriate regulatory principles have been given more
doi:10.2991/ieesasm-16.2016.280 fatcat:mh4p72v2uvcmfikn3cgcu7654u