The financial system is to achieve its functions in a specific economic environment, the financial system must adapt to the economic environment on which it exists, and at the same time, the economic environment is constantly changing, and the financial system must also change synchronously, that is, it should have the ability to adapt and innovate. Pen % fun % Pavilion www.biquge.info

The adaptability of the financial system, that is, the financial development of a country, should be focused on the system construction and coordinated development that emphasize the normal play of the basic functions of the financial system, rather than focusing on the development of the external structure of the market and the expansion of the scale in isolation from the basic functions of the financial system.

For example, in order to improve the price discovery function of the financial system, market integration and marketization of interest rates and exchange rates are necessary, but these practices will increase market risks, and if the risk prevention and decentralization functions of the financial system are not in place, then this unbalanced development will lead to macroeconomic instability, which will eventually inhibit the normal play of the price discovery function of the financial system.

A financial system that can ensure a benign interaction between financial development and the real economy is definitely not simply a collection of investment and financing systems and financial instruments that pursue the best in terms of scale and quantity, but should be able to balance various conflicts of interest and effect conflicts, and on this basis, it can effectively play the six basic functions of the financial system, so as to promote the sustained and stable growth of the real economy.

The financial system must realize its functions through its own business activities, and it cannot rely on the continuous investment of the government or any individual in addition to the necessary initial investment, so that the financial system can exist and continue to develop for a long time, that is, the financial system must have the ability to operate.

The operational capacity of a financial institution refers to the extent to which a financial institution uses economic resources to achieve its business objectives. Due to the diversity of economic subjects, it leads to the diversification of business objectives, and business performance is a comprehensive reflection of diversification goals and a reflection of the size of business capacity.

Financial institutions achieve their business objectives by providing financial services or instruments such as debt instruments, credit asset use rights, stocks, and bonds to the public.

Financial institutions must rely on their own capabilities to perform their functions, rather than relying on continuous external resource investment, so operational capacity is a necessary condition for the survival of financial institutions, and is the basis for its continuous development.

In order to play the function of providing channels for the transfer of economic resources in time and space and the function of financing funds and equity refinement, the financial system must be able to price financial assets, turn illiquid assets into liquid assets, and be able to optimize the allocation of assets, so the financial system must have the ability to allocate, liquidity and pricing.

The efficiency of financial resource allocation refers to the ability of the market to provide financial resources to those who need funds at the lowest transaction cost, in other words, the ability to allocate limited financial resources to enterprises and industries with the best benefits.

The role of financial intermediaries in capital allocation mainly comes from the information advantages of financial intermediaries. Under the government-led financing system, banks and enterprises should theoretically have a close relationship, especially the establishment of the main banking system in Japan, South Korea and other countries, which is very beneficial to the flow of information between banks and enterprises, and banks can make full use of this information advantage to select good projects and effectively supervise the travel of projects, so as to achieve higher efficiency of capital allocation.

To improve the efficiency of capital allocation, in addition to taking advantage of the information advantages of financial intermediaries, it can also be achieved by reducing the amount of information required for capital allocation through contractual arrangements. Adverse selection and moral hazard caused by information asymmetry are the main factors affecting the efficiency of capital allocation.

When the proportion of enterprises' own funds is increased or mortgages and guarantees are increased, adverse selection and moral hazard can be reduced or even eliminated, thereby reducing or even eliminating the demand for information when banks provide loans, that is, there is a complementary relationship between information and its own funds, mortgages and guarantees.

Through various channels such as banking, securities, and insurance, the financial system efficiently directs funds from the savings field to the investment field, and gives full play to the supervisory function of the financial system, so as to promote a virtuous cycle of funds in the real economy and realize the optimal allocation of resources.

The financial system is used as a way to regulate the economy at the macro level and convey policy intentions, and the financial system must have the ability to transmit in order to achieve this purpose.

The financial system is an important channel for the government to influence the real sector of the economy and promote economic growth. It is naturally able to assume this function of transmitting policy intentions because it is inextricably linked to the economic sector and is easy to operate, easy to measure, and controllable. The transmission of policy measures through the financial system generally needs to go through the following three levels: the first layer is the transmission chain of the impact of monetary policy on the financial system, the second layer is the transmission chain of the impact of the financial system on the real economic sector, and the third layer is the contribution chain of various sectors of the real economy to economic growth.

The financial system's ability to communicate policy intent can be measured by the timeliness, completeness, and accuracy of the transmission.

Government policy measures will only have good results if they are communicated in a timely manner, otherwise such policy measures may be counterproductive in a changed environment.

Integrity means that all the government's policy intentions must be able to be transmitted to economic activities, and some of them must not be omitted, otherwise the expected policy effect may not be achieved.

Accuracy refers to channeling policies in a way that policymakers have designed to work in the way they are intended.

Liquidity refers to the fact that resources can flow more fully due to the role of the financial system.

The benefits of an adequate flow of resources to the operation of the economy are obvious, allowing idle resources to be put to use and inefficient resources to be used more efficiently.

The liquidity of the financial system has two meanings, one is its ability to liquidate fixed, illiquid assets into liquid assets, and the other is the ability of liquid assets to circulate between different investors.

How do you measure the liquidity of the financial system? First, when all the effective capital supply flows to the demand side, all the effective demand is satisfied, there is no idle capital, and there is no unmet effective capital demand, the supply and demand of monetary funds have reached the best equilibrium. Second, the marginal value of resources allocated for various purposes is equalized, so that the allocation of resources is in the best state.

The market economy follows the principle of equivalent exchange, and trading in the financial markets is no exception.

Pricing in financial transactions takes into account not only the intrinsic value of a financial product, but also its value at risk. In the financial market, the price of financial products can be formed through a relatively open bidding method, through which the financial market can quickly balance the supply and demand of financial products, and form a unified market price for financial products.

Based on this, the financial market can effectively guide the accumulation of incremental financial resources and the adjustment of stock resources. Therefore, the accurate pricing of financial assets in the financial system is a prerequisite for allocating resources and absorbing risks.

The financial system exists and functions in a specific economic environment, and there is no financial system that can exist independently from the economic environment.

The modern economic environment is becoming more and more complex due to the deepening of the social division of labor, the further strengthening of international economic ties, the increasing application of technological means and knowledge in economic development, and the increasing number of ways of market transactions.

Correspondingly, the risks inherent in the modern economy are becoming more complex.

Therefore, the financial system, which plays a pivotal role in the economy, must have the ability to change with the changes in the economic environment, so that it can normally perform its various functions and meet the requirements of economic development for the financial system. Innovation in the financial system interacts with changes in the economic environment.

A rigid financial system will only hinder the operation of the economy, thereby restricting the further development of the economy.

The function of the financial system to transmit information is particularly important, and it is because of this function that the financial system is truly connected.

It is less expensive for investors to join together to form a consortium and have the alliance send a representative to supervise the business than a single investor to independently supervise the business managed by the agent. This alliance can be either a financial intermediary or a financial market.

Financial intermediaries have a comparative advantage in supervising enterprises, while financial markets have a comparative advantage in information acquisition and aggregation.

How to make full use of the leverage of finance and maximize the development of the economy is also a topic that Zhao Weidong and Di Lingjun often discuss together.

Without the strength of the country and the prosperity and happiness of the people, there is no value in investing such huge energy and financial resources in oneself.

In order to ensure financial stability and give full play to the tremendous role of finance in the economy and people's livelihood, Zhao Weidong believes that in economically backward countries, the unified management and operation of monetary business by the unified banking institutions of the state will play a huge role in developing the economy and improving the people's livelihood.

In fact, the national bank of every country is the most profitable bank, for example, the US dollar, the current value of one US dollar is not less than the future value of 100 US dollars, that is, the US government took 99 US dollars from the hands of everyone in the country, and the process of depreciation of the currency is the process of harvesting the country.

Therefore, no matter how the enterprise makes money, it will never be able to earn the country, so how to use the bank's money to create wealth and develop people's livelihood is actually to use the money in everyone's hands to create wealth and develop people's livelihood, and truly take it from the people and use it for the people.

Zhao Weidong believes that it is possible to take advantage of the favorable conditions for mastering the functions of the state bank to implement the system of interest-free loans, reduce the cost of starting a business to the greatest extent, and use future money to do the business at hand, and all the expenses and interests of the bank can be resolved by issuing more currency and depreciating it appropriately.

The lower the cost of enterprise investment, the higher the profit of the enterprise, the faster the enterprise will develop, and the appropriate depreciation of the currency is also conducive to exports.

If the loan does not charge interest, the price of all fixed assets increases due to the depreciation of the loan, and the enterprise has no risk, and the bank has no risk after the bank recovers the fixed assets, which will greatly promote the explosive growth of investment and entrepreneurship.

With a large number of investment enterprises, a large number of jobs can be arranged, as the saying goes, there is no stability without agriculture, and there is no wealth without work, and to solve the employment problem is to solve the problems in the people's lives, and we can get rid of the current situation of poverty.

With a large number of investment enterprises, we will be able to create a large number of tax sources, and the interest costs of the banks will be reduced, so that the operating costs of the enterprises will be greatly reduced, the profits will increase by a large margin, the competitiveness of the enterprises will be stronger, and they will occupy a more favorable position in the market competition, the enterprises will be more able to develop, the state's fiscal and tax revenues will be more, the country's economic strength will be stronger, and the country will be more powerful.

Moreover, for economically backward countries, the people's living standards are low, the most important thing is that the living conditions are particularly poor, if the country builds a good living conditions of the house, in the form of interest-free loans to residents, as for when you can afford to repay the loan.

The financial system is to achieve its functions in a specific economic environment, and the financial system must adapt to the economic environment in which it depends, and at the same time, the economic environment is constantly changing, and the financial system must also change synchronously, that is, it should have the ability to adapt and innovate.

The adaptability of the financial system, that is, the financial development of a country, should be focused on the system construction and coordinated development that emphasize the normal play of the basic functions of the financial system, rather than focusing on the development of the external structure of the market and the expansion of the scale in isolation from the basic functions of the financial system.

For example, in order to improve the price discovery function of the financial system, market integration and marketization of interest rates and exchange rates are necessary, but these practices will increase market risks, and if the risk prevention and decentralization functions of the financial system are not in place, then this unbalanced development will lead to macroeconomic instability, which will eventually inhibit the normal play of the price discovery function of the financial system.

A financial system that can ensure a benign interaction between financial development and the real economy is definitely not simply a collection of investment and financing systems and financial instruments that pursue the best in terms of scale and quantity, but should be able to balance various conflicts of interest and effect conflicts, and on this basis, it can effectively play the six basic functions of the financial system, so as to promote the sustained and stable growth of the real economy.

The financial system must realize its functions through its own business activities, and it cannot rely on the continuous investment of the government or any individual in addition to the necessary initial investment, so that the financial system can exist and continue to develop for a long time, that is, the financial system must have the ability to operate.

The operational capacity of a financial institution refers to the extent to which a financial institution uses economic resources to achieve its business objectives. Due to the diversity of economic subjects, it leads to the diversification of business objectives, and business performance is a comprehensive reflection of diversification goals and a reflection of the size of business capacity.

Financial institutions achieve their business objectives by providing financial services or instruments such as debt instruments, credit asset use rights, stocks, and bonds to the public.

Financial institutions must rely on their own capabilities to perform their functions, rather than relying on continuous external resource investment, so operational capacity is a necessary condition for the survival of financial institutions, and is the basis for its continuous development.

In order to play the function of providing channels for the transfer of economic resources in time and space and the function of financing funds and equity refinement, the financial system must be able to price financial assets, turn illiquid assets into liquid assets, and be able to optimize the allocation of assets, so the financial system must have the ability to allocate, liquidity and pricing.

The efficiency of financial resource allocation refers to the ability of the market to provide financial resources to those who need funds at the lowest transaction cost, in other words, the ability to allocate limited financial resources to enterprises and industries with the best benefits.

The role of financial intermediaries in capital allocation mainly comes from the information advantages of financial intermediaries. Under the government-led financing system, banks and enterprises should theoretically have a close relationship, especially the establishment of the main banking system in Japan, South Korea and other countries, which is very beneficial to the flow of information between banks and enterprises, and banks can make full use of this information advantage to select good projects and effectively supervise the travel of projects, so as to achieve higher efficiency of capital allocation.

To improve the efficiency of capital allocation, in addition to taking advantage of the information advantages of financial intermediaries, it can also be achieved by reducing the amount of information required for capital allocation through contractual arrangements. Adverse selection and moral hazard caused by information asymmetry are the main factors affecting the efficiency of capital allocation.

When the proportion of enterprises' own funds is increased or mortgages and guarantees are increased, adverse selection and moral hazard can be reduced or even eliminated, thereby reducing or even eliminating the demand for information when banks provide loans, that is, there is a complementary relationship between information and its own funds, mortgages and guarantees.

Through various channels such as banking, securities, and insurance, the financial system efficiently directs funds from the savings field to the investment field, and gives full play to the supervisory function of the financial system, so as to promote a virtuous cycle of funds in the real economy and realize the optimal allocation of resources.

The financial system is used as a way to regulate the economy at the macro level and convey policy intentions, and the financial system must have the ability to transmit in order to achieve this purpose.

The financial system is an important channel for the government to influence the real sector of the economy and promote economic growth. It is naturally able to assume this function of transmitting policy intentions because it is inextricably linked to the economic sector and is easy to operate, easy to measure, and controllable. The transmission of policy measures through the financial system generally needs to go through the following three levels: the first layer is the transmission chain of the impact of monetary policy on the financial system, the second layer is the transmission chain of the impact of the financial system on the real economic sector, and the third layer is the contribution chain of various sectors of the real economy to economic growth.

The financial system's ability to communicate policy intent can be measured by the timeliness, completeness, and accuracy of the transmission.

Government policy measures will only have good results if they are communicated in a timely manner, otherwise such policy measures may be counterproductive in a changed environment.

Integrity means that all the government's policy intentions must be able to be transmitted to economic activities, and some of them must not be omitted, otherwise the expected policy effect may not be achieved.

Accuracy refers to channeling policies in a way that policymakers have designed to work in the way they are intended.

Liquidity refers to the fact that resources can flow more fully due to the role of the financial system.

The benefits of an adequate flow of resources to the operation of the economy are obvious, allowing idle resources to be put to use and inefficient resources to be used more efficiently.

The liquidity of the financial system has two meanings, one is its ability to liquidate fixed, illiquid assets into liquid assets, and the other is the ability of liquid assets to circulate between different investors.

How do you measure the liquidity of the financial system? First, when all the effective capital supply flows to the demand side, all the effective demand is satisfied, there is no idle capital, and there is no unmet effective capital demand, the supply and demand of monetary funds have reached the best equilibrium. Second, the marginal value of resources allocated for various purposes is equalized, so that the allocation of resources is in the best state.

The market economy follows the principle of equivalent exchange, and trading in the financial markets is no exception.

Pricing in financial transactions takes into account not only the intrinsic value of a financial product, but also its value at risk. In the financial market, the price of financial products can be formed through a relatively open bidding method, through which the financial market can quickly balance the supply and demand of financial products, and form a unified market price for financial products.

Based on this, the financial market can effectively guide the accumulation of incremental financial resources and the adjustment of stock resources. Therefore, the accurate pricing of financial assets in the financial system is a prerequisite for allocating resources and absorbing risks.

The financial system exists and functions in a specific economic environment, and there is no financial system that can exist independently from the economic environment.

The modern economic environment is becoming more and more complex due to the deepening of the social division of labor, the further strengthening of international economic ties, the increasing application of technological means and knowledge in economic development, and the increasing number of ways of market transactions.

Correspondingly, the risks inherent in the modern economy are becoming more complex.

Therefore, the financial system, which plays a pivotal role in the economy, must have the ability to change with the changes in the economic environment, so that it can normally perform its various functions and meet the requirements of economic development for the financial system. Innovation in the financial system interacts with changes in the economic environment.

A rigid financial system will only hinder the operation of the economy, thereby restricting the further development of the economy.

The function of the financial system to transmit information is particularly important, and it is because of this function that the financial system is truly connected.

It is less expensive for investors to join together to form a consortium and have the alliance send a representative to supervise the business than a single investor to independently supervise the business managed by the agent. This alliance can be either a financial intermediary or a financial market.

Financial intermediaries have a comparative advantage in supervising enterprises, while financial markets have a comparative advantage in information acquisition and aggregation.

How to make full use of the leverage of finance and maximize the development of the economy is also a topic that Zhao Weidong and Di Lingjun often discuss together.

Without the strength of the country and the prosperity and happiness of the people, there is no value in investing such huge energy and financial resources in oneself.

In order to ensure financial stability and give full play to the tremendous role of finance in the economy and people's livelihood, Zhao Weidong believes that in economically backward countries, the unified management and operation of monetary business by the unified banking institutions of the state will play a huge role in developing the economy and improving the people's livelihood.

In fact, the national bank of every country is the most profitable bank, for example, the US dollar, the current value of one US dollar is not less than the future value of 100 US dollars, that is, the US government took 99 US dollars from the hands of everyone in the country, and the process of depreciation of the currency is the process of harvesting the country.

Therefore, no matter how the enterprise makes money, it will never be able to earn the country, so how to use the bank's money to create wealth and develop people's livelihood is actually to use the money in everyone's hands to create wealth and develop people's livelihood, and truly take it from the people and use it for the people.

Zhao Weidong believes that it is possible to take advantage of the favorable conditions for mastering the functions of the state bank to implement the system of interest-free loans, reduce the cost of starting a business to the greatest extent, and use future money to do the business at hand, and all the expenses and interests of the bank can be resolved by issuing more currency and depreciating it appropriately.

The lower the cost of enterprise investment, the higher the profit of the enterprise, the faster the enterprise will develop, and the appropriate depreciation of the currency is also conducive to exports.

If the loan does not charge interest, the price of all fixed assets increases due to the depreciation of the loan, and the enterprise has no risk, and the bank has no risk after the bank recovers the fixed assets, which will greatly promote the explosive growth of investment and entrepreneurship.

With a large number of investment enterprises, a large number of jobs can be arranged, as the saying goes, there is no stability without agriculture, and there is no wealth without work, and to solve the employment problem is to solve the problems in the people's lives, and we can get rid of the current situation of poverty.

With a large number of investment enterprises, we will be able to create a large number of tax sources, and the interest costs of the banks will be reduced, so that the operating costs of the enterprises will be greatly reduced, the profits will increase by a large margin, the competitiveness of the enterprises will be stronger, and they will occupy a more favorable position in the market competition, the enterprises will be more able to develop, the state's fiscal and tax revenues will be more, the country's economic strength will be stronger, and the country will be more powerful.

Moreover, for economically backward countries, the people's living standards are low, the most important thing is that the living conditions are particularly poor, if the country builds a good living conditions of the house, in the form of interest-free loans to residents, as for when you can afford to repay the loan.

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