Internet Financial Regulation Should Follow Five Principles

< p > the people's Bank of China issued the China financial stability report (2014) on 29 th, and made a comprehensive assessment of the stability of China's financial system in 2013.

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In the P report, special topics are devoted to the development and supervision of China's Internet finance, and it is pointed out that China's Internet financial regulation should follow five principles.

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< p > this financial stability report points out that some new businesses should be observed and analyzed in a dispassionate way. All financial innovations that are conducive to the service of the real economy and the growth of entrepreneurship should be respected and encouraged.

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< p > but we must soberly recognize the financial function attributes and financial risk attributes of Internet finance, and control the risks that may be triggered by mistakes in the predictable and affordable range.

This requires insisting on bottom line thinking, strengthening standardized management, and promoting the new financial services format driven by innovation to develop healthfully on a sustainable track.

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< p > to this end, Internet < a href= "//www.sjfzxm.com/news/index_c.asp" > financial supervision < /a > should follow five principles.

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< p > 1. Internet financial innovation must adhere to the essential requirement of financial service entity economy and reasonably grasp the boundaries and dynamics of innovation.

Financial innovation, including Internet finance, must be guided by the market. In order to improve the financial service capacity and efficiency, and better serve the real economy, it must not be divorced from financial regulation and the real economy of services.

Internet payment in Internet finance should always adhere to the purpose of providing services for the development of e-commerce and providing small, fast and convenient small and micro payment services for the community. P2P and crowd financing should adhere to the functions of the platform, not engage in a disguised form of pool of funds, and must not illegally collect deposits, illegally raise funds or illegally engage in securities business and other illegal financial activities in the name of Internet finance.

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< p > two is < a href= "//www.sjfzxm.com/news/index_c.asp" > Internet < /a > financial innovation should be subordinated to the general requirements of macroeconomic regulation and financial stability.

All financial innovations including Internet finance should be conducive to improving the efficiency of resource allocation, maintaining financial stability, promoting the marketization of interest rates steadily, regulating the liquidity of the central bank, avoiding violent fluctuations in the price of financial markets due to some financial business innovation, increasing the financing cost of the real economy, and thus not affecting the liquidity pformation of the banking system, thereby reducing the credit support ability of the banking system to the real economy.

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< p > three is to effectively safeguard consumers' < a href= "//www.sjfzxm.com/news/index_c.asp > legal rights < /a >.

Internet financial enterprises should have sufficient information disclosure and risk disclosure to set up various businesses, and no organization should commit revenue directly or indirectly to mislead consumers.

To set up any business, we should make detailed institutional arrangements for the protection of consumers' rights and interests.

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< p > four is to maintain fair competition in the market order.

In market economy, fair competition is the inevitable requirement to ensure the decisive role of the market in resource allocation.

To carry out online financial business online, we must obey the existing laws and regulations, and must abide by capital constraints.

There are no unreasonable terms of contract, such as the withdrawal of deposits in advance or the termination of services in advance.

Any competitor shall comply with the requirements of the anti unfair competition law and shall not defame other competitors in any way.

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< p > five is to deal well with the relationship between government regulation and self-discipline management, and give full play to the role of industry self-regulation.

We should press ahead with the establishment of the China Internet Finance Association, give full play to the role of the association's self-regulation and management, and promote the formation of unified industry service standards and rules, and guide Internet financial enterprises to fulfill their social responsibilities.

Large institutions in the Internet financial industry should play a leading role in the establishment of industry standards, serving the real economy and serving the public.

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