The report of the 20th National Congress of the Communist Party of China proposed to strengthen and improve modern financial supervision, strengthen the financial stability guarantee system, bring all kinds of financial activities under supervision according to law, and keep the bottom line of no systematic risk. We must deepen the reform of the financial system, promote the construction of the financial safety net, and continue to strengthen the ability to prevent and control financial risks in accordance with the decisions and arrangements of the Party Central Committee. （1） Macro prudential management. It is the primary task of financial governance to prevent and resolve systemic risks and avoid a global financial crisis. The concept of macro prudential policy in China has a long history. As early as the Spring and Autumn Period and the Warring States Period, the government began to supervise and control the circulation of commodity currency. The "equal loss and equal balance" in the Western Han Dynasty has become an institutional arrangement to promote economic development and financial stability. In the modern market economy, the financial crisis caused by the over issuance of money, over borrowing, foam of real estate, complexity of financial products, balance of payments imbalance and other issues has repeatedly occurred, but few countries can really prevent problems before they happen. After the global financial crisis broke out in 2008, the international community reviewed and strengthened the financial regulatory arrangements from the perspective of "counter cyclical and anti infectious", and improved the analytical framework and regulatory tools. Effective information sharing and adequate policy coordination are essential, but it is more important for the decision-making level to keep a high degree of vigilance against major risks and the executive level to respond quickly. （2） Micro prudential supervision. The traditional Chinese business culture has placed special emphasis on prudent operation. "Seeking profit from the capital" is the most basic and important principle of the ancient bank, and the essence is to attach importance to capital constraints. The Basel Committee on Banking Supervision and the International Association of Insurance Supervisors have gradually promoted the formation of today's regulatory rule system for the banking and insurance industries on the basis of capital constraint rules. Capital standards, government regulation and market constraints are known as the "three pillars" of micro prudential regulation. Many tools widely used in micro prudential supervision, such as provision system, also have the function of preventing systemic risk. （3） Protect consumer rights and interests. There is a serious information asymmetry in financial transactions. It is difficult for ordinary residents to have rich financial knowledge, and the staff of financial institutions often do not fully understand the risks contained in financial products. This leads to financial consumption compared with other aspects of consumption, the parties often suffer greater loss of interest. After the global financial crisis in 2008, financial consumer protection received unprecedented attention. The World Bank has introduced 39 good practice standards, and some countries have made major adjustments to the financial regulatory framework. In China, the "One Bank, Two Sessions" have set up financial consumer protection departments, initially establishing a behavior supervision framework from the aspects of strengthening financial knowledge publicity, standardizing the behavior of financial institutions, improving supervision and management rules, and timely punishing violations. （4） Fight against financial crimes. Financial criminal activities are highly covert and harmful, while their professionalism and technicality are more complex. Many countries have set up special financial crime investigation institutions, and some countries have endowed
Edit：He Chuanning Responsible editor：Su Suiyue
Source：People's Daily
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