The development of Internet finance in recent years shows that financial technology is a double-edged sword, which enhances the adaptability and inclusiveness of the financial system at the same time, may make the financial risk transmission more rapid, the financial risk structure more complex, and bring great challenges to financial security. It should be made more clear that with the continuous emergence of various new financial technologies, it is necessary to strictly guard against the financial institutions taking the new technology as a cloak to the reality, and must always adhere to the fundamental purpose of the real economy of financial services.
The 2020 People's Bank of China Work Conference was recently held in Beijing. The meeting summarized the main work in 2019, analyzed the current economic and financial situation, and deployed the key work in 2020. On the work in 2020, the conference proposed seven key directions, including resolutely winning the battle to prevent and defuse major financial risks. The meeting called for a continuous special rectification of Internet financial risks, the basic solution of Internet financial stock risks, and the establishment and improvement of a long-term regulatory mechanism. (See A9 for related coverage)
Preventing and defusing major risks is the first battle to win and build a well-off society in an all-round way. Financial risk is one of the most prominent major risks at present, and it is the most important part of the current financial work to prevent and defuse the major financial risks. In 2019, the complex situation of facing the obvious rise of domestic and foreign risk challenges has made key progress in preventing and defusing major financial risks. Efforts have been made to effectively curb the rising momentum of the macro-leverage rate, and the effectiveness of the governance of the shadow bank has been remarkable. At this time, the relevant departments need to sum up the effectiveness of the financial risk rectification work, and the regulatory authorities and all sectors of the community need to conscientiously learn the profound lessons brought by various financial risks in recent years, especially Internet financial risks.
With the development of Internet technology, Internet finance ushered in a wave of great development. The common forms of Internet finance include Internet payment, Internet fund, Internet insurance and so on, and the Alipay, WeChat wallet and so on widely used by people belong to Internet payment. Internet finance has greatly improved the convenience of payment and improved the efficiency of social operation, so it has been universally recognized. However, while China's Internet finance has made rapid progress, some institutions'legal consciousness, risk consciousness and consumer's rights and interests protection consciousness are missing, and the supervision of some related sub-industries lags behind the development of the market and the innovation of business form. In the rise of Internet finance, some people are engaged in illegal fund-raising, pyramid marketing, fraud and other illegal and criminal activities under the guise of financial innovation.
All kinds of illegal and criminal activities carried out in the name of Internet finance are more concealed, the absorption rate is faster, the amount is greater, and the harm is more serious. Previous P2P online lending platform, which was a serious disaster area of Internet financial risk outbreak, had a large number of P2P online loan platforms in the past period of“detonation”, or went down, or“runningthe road”, causing some participants to suffer heavy losses. Other illegal elements put traditional investment and financial management mode into the``new bottle'' of Internet finance. In a short time, the amount of illegal fund-raising has reached tens of billions of dollars, and the victims are often hundreds of thousands of dollars.
Poor financial regulation of the Internet, but also lead to \"cash loans\" and \"campus loans\" once raging, and caused violent collection, high rates, invasion of personal privacy and many other serious problems. The speculative speculation related to virtual currency is also one of the prominent Internet financial chaos, and the related illegal financial activities lead to the rapid aggregation of risks and seriously disturb the economic, financial and social order.
Internet financial risks let some people pay a huge price, the relevant lessons are very profound, we need to seriously sum up and think about. The development of Internet finance in recent years shows that financial technology is a double-edged sword, which enhances the adaptability and inclusiveness of the financial system at the same time, may make the financial risk transmission more rapid, the financial risk structure more complex, and bring great challenges to financial security. Reflecting on the Internet financial risks, should be more clear, with the emergence of various new financial technology, we must strictly prevent financial institutions from taking the new technology as a cloak, and must always adhere to the fundamental purpose of the real economy of financial services.
With the further development and remarkable results of the special rectification work on Internet financial risks, the stock risks of Internet payment and P2P network lending have been defused. This time, the central bank work conference calls for continuous Internet financial risk special regulation, indicating that the future regulation of Internet finance is bound to be long-term and long-term.
There must be vigilance against the resurgence of Internet financial chaos. Internet finance cannot be \"killed\" because of the risks, but it is not allowed to cheat under the banner of innovation. The integration of finance and technology is in the ascendant, and Internet financial regulation has a long way to go.