Research on Principles and Models of Internet Finance Regulation in China

Abstract

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. Concept 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 4th International Education, Economics, Social Science, Arts, Sports and Management Engineering Conference (IEESASM 2016) © 2016. The authors Published by Atlantis Press 1277 significance. We should adopt a tolerant attitude towards the change of the provision and the way of obtaining financial services. Too early and too strict supervision will inhibit the development of Internet banking. Financial regulators to deal with systemic risks remain on high alert, timely intervention and resolve the system risk focus should be settled on the dual characteristics of Internet financial risk. On the one hand, the development of Internet Banking for reducing systemic financial risks has a significant boost, such as the use of Internet platforms and big data technology to slow the information asymmetry. On the other hand, the possibility of Internet Financial amplification system of financial risk cannot be ignored, such as the lower threshold of the moral hazard hidden moral hazard. Only grasp the degree of regulatory can we achieve a good balance between the maintenance of the internet financial innovation vitality and the prevention of systemic risk. Principle of Serving Economy. Internet finance is an extension of the traditional financial industry. It is a new type of financial model. Therefore, we should clarify the essence of internet finance in the process of development and maintenance of internet finance to ensure that it can be very good for China's real economic construction services. Internet finance is based on the rapid development of the Internet for people to change the way of communication and communication; the reason for the rapid development of internet finance is to fill the gaps in the traditional financial services. Enterprises for financing needs cannot be met through the bank. China's interest rate market process is slow. The low savings rate cannot meet the needs of investors to invest and prompted the expansion of the Internet financial products. The credit problem of the foreign exchange transaction has prompted the emergence of the third party payment, the expansion of the business in order to facilitate and efficiency as the goal, to further promote the development of the third party payment. In internet finance supervision, whether the convenience of the investment and financing services has a significant impact, whether to enhance market efficiency, it should be an important foothold and starting point for the development of regulatory measures. In the supervision of internet finance, we can carry out a certain technical and institutional innovation, but we should take the service finance, service economy construction as the main development principles. Principle of Information Disclosure. The most prominent problem of the internet finance industry is the information asymmetry. It demonstrates in the false information of debtor, the information concealing of the platform and the illegal information disclosure by regulatory authorities. These human factors caused by information black hole, resulting in the majority of creditors investment risk laden, natural rating is through revealing creditors note of the credit risk of the obligor to solve hinder the combination of information asymmetry. The full range of data monitoring and data analysis is to control the risk and take the necessary regulatory action in a timely manner. Big data to lay the technical foundation for the development of internet finance, but also for regulators to strengthen the identification of Internet financial risks, monitoring, measurement and control provides a means. Timely access to sufficient data information, regulators understand the basis and the key of the internet finance risk picture. Therefore, the formulation of technical standards for the information monitoring needs based on good practice in the industry, regulators needs and the communication and cooperation to jointly develop monitoring data analysis, index is defined and the statistical scope, frequency, establish and improve the monitoring data, analysis of the mechanism. Networking new financial risks, information monitoring should be flexible enough to maintain a regular assessment of the monitoring effect and continued to improve, to avoid regulatory loopholes, to prevent the emergence of regulatory vacuum. Strengthen information disclosure. We should establish a timely, accurate, relevant and adequate information disclosure system to enhance the financial transparency of the internet. Strengthening information