Recently, the bankruptcy of Silicon Valley Bank has caused a sensation around the world, detonating the thunder in the field of Internet finance, which has aroused widespread attention to the regulatory issues in the field of Internet finance.
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In this incident, the problem of insufficient supervision of financial institutions by regulators and major loopholes in supervision was fully exposed, and it also showed the necessity of Ant Financial being supervised. This article mainly discusses two aspects, one is the financial supervision problems exposed by the bankruptcy of Silicon Valley Bank, and the other is the mainland's emphasis on Internet financial supervision from the suspension of Ant Financial's listing, and the necessity of this move.
The regulatory issues exposed by the Silicon Valley banking scandal
Silicon Valley Bank is an internet bank whose main business involves personal deposits, personal loans, and commercial loans. In the early days of its establishment, due to imperfect regulatory policies and imperfect regulatory means, regulators had certain difficulties in supervising it. Silicon Valley Bank has a large number of personal loan businesses, while attracting funds with high interest rates, which brings high risks. However, the regulator did not detect these problems in time and took effective regulatory measures to intervene, resulting in the gradual accumulation of bank risks and eventual declaration of bankruptcy.
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The lesson from the Silicon Valley banking incident is that regulators have certain weaknesses in the supervision of emerging financial businesses, such as:
- Regulatory policies are not sound and regulatory means are not perfect, resulting in certain difficulties for regulators in supervising the field of Internet finance.
- Regulators lack knowledge of emerging financial businesses and find it difficult to identify and assess the risks involved.
- Regulators lack effective supervision over the internal operations of financial institutions, and it is difficult to detect and solve problems in a timely manner.
From the perspective of Ant Financial's suspension of listing, we can see the forward-looking and necessary supervision of Internet finance in the mainland
Ant Financial is an internet finance company whose business involves consumer financial services such as Alipay, as well as investment and financial services such as Ant Wealth. In 2020, when Ant Financial was about to go public, considering its own huge financial risks and huge security risks in its business methods, it was suspended from listing, which shows the determination and ability of the Chinese government to control financial risks, and also shows its emphasis on supervision and risk control in the field of Internet finance.
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Ant Financial's business involves many fields, including consumer finance, small and micro enterprise finance, investment and wealth management, etc., and its market share in the field of Internet finance is very large, so its risk control and regulatory issues have also attracted much attention. The introduction of restrictive measures shows that regulators attach importance to the supervision and risk control of Ant Financial, and also indicates that regulators will be more strict in the field of Internet finance.
In addition, Ant Financial's business characteristics are similar to those of Silicon Valley Bank, and there are certain risks. For example, Ant Financial's consumer finance business, although it provides convenient and fast loan services for consumers, also has risks. If Ant Financial's loan business is too expanded and risk control is ineffective, it may lead to the accumulation and outbreak of risks.
Therefore, for the supervision and risk control in the field of Internet finance, the government and regulators should pay more attention to it, formulate stricter regulatory policies and measures, and improve the level and capacity of supervision. At the same time, financial institutions should also strengthen internal risk management and control, strictly abide by regulatory requirements, and protect the legitimate rights and interests of consumers.