Systemic financial risk control is the eternal theme of financial work. At present, China's financial industry is developing quite fast on the technology, product innovation such as Internet finance, financial technology, artificial intelligence and other new terms. In order to cope with various risks that may occur in financial innovation, local financial management departments are also constantly exploring new regulatory models, especially in some areas where financial institutions are more concentrated. Regulators are also looking for balance in promoting financial innovation and control of regional and systemic financial risks.
In China, when talking about financial innovation, Zhejiang Province is a "landmark" that cannot be ignored. In recent years, the financial industry in Zhejiang Province has made great progress, and a number of unique regional financial reform and innovation, demonstration pilot area emergend--- Wenzhou, Lishui, Taizhou and Yiwu. They launched private finance, rural finance, micro finance,trade finance and other areas of the diversification of reform attracted the attention of the country.
However, innovation has always brings risks. In promoting financial innovation at the same time, Zhejiang Province will take the initiative to take control of regional and systemic financial risks, focusing on key areas.
"Successful experience of typical enterprises is worth learning, but we need to choose a targeted application." Professor Huang Ying, member of DPP Zhejiang Provincial Committee, director of Zhejiang University Capital Market Research Center said in an interview with the "People's Political Consultative Conference" reporter interview. In her view, in the process of prevention and control of systemic financial risks, the identification and monitoring of common risk points are the primary task of regulators, that is, "gray rhinoceros" event so called by the financial field. That is often ignored, and eventually accumulated to be out of systemic risk control, spreading to the entire financial system.
"Therefore, with the advantages of Internet technology, and the local relevant departments, we should establish financial risk early warning and monitoring system, for real-time supervision of bank asset quality, state-owned enterprise resource utilization efficiency, and local debt risks. We should also improve the enterprise credit evaluation system and build a quantitative assessment model depending on the enterprise economic efficiency, development prospects, historical credit and other indicators. Loans should be given to those high-quality enterprises, in order to reduce the bad bank loan rate as far as possible from the source. Professor Huang Ying also suggested that Zhejiang Province should deepen the financial reform in order to facilitate the promotion and reproduction of relevant success stories in other regions.
Joint efforts should be paid in the promotion of financial innovation, and risk identification and monitoring work are also essential, Professor Huang Ying said that the "key "of identification of financial risk is to see its degree of service to the real economy. Thus we should improve the economic efficiency of financial services entities, and guide the development of financial innovation to orderly compliance.
“In addition, the high leverage is also one of the main causes of systemic financial risk, for which regulators need to strengthen financial risk control, including strengthening monitoring and risk warning, co-financing of controlling over-financing, encouraging direct financing to reduce debt leverage, increasing the disposal of non-performing loans and the use of industrial funds and insurance funds, improving the loan risk sharing and compensation mechanism, standardizing corporate financing behavior, and deepening the construction of social credit system, etc. It is also urgent to reduce the network security risks, control the operational risk by the third department, and monitor the possible macroeconomic risks in the increased financial technology activities "Professor Huang Ying said.
