Abstract: Ten years after the financial crisis, China started a new round of financial supervision system reform，including establishing a consumer financial protection agency, establishing Financial Stability and Development Committee under the State Council, and form bank insurance supervision and administration commission, to form “a committee under the State Council, the central bank and two committees” new financial regulatory framework. The reform of financial supervision system in China has the characteristics of gradual reform and compulsory reform. Gradual reform is beneficial to reduce the friction resistance of new system implementation, but increases the institutional inertia of compulsory means. The reform of banking supervision system is the forerunner of the reform of financial supervision system, and it faces the greatest resistance to reform. Influenced by the inertial changes of the mandatory system in the planned economy period, the banking supervision system focuses on the institutional supervision and legislation of the main body. The relatively strict entry threshold of the banking supervision system limits the development of diversification of the banking market subject and the multi-level of the credit market. With the in-depth development of market economy, the current banking supervision system fails to clarify the rights and responsibilities of protecting the rights and interests of financial consumers, fails to cope with comprehensive management, fails to meet the multi-level credit demand, and has fallen behind the new financial operation system and supervision system. Under the new trend of financial supervision system, the banking supervision system should actively respond to market demands, break the negative institutional inertia, absorb the concept of functional supervision, establish the financial information resource sharing database and financial research institute, and implement the combination of hierarchical differentiated supervision and unified supervision to realize the effective allocation of resources.

Key words: financial supervision system, banking industry, credit market, financial innovation