Financial Corporate Boundaries. Trend Of Mixed Choice

Two major independent Wall Street investment banks transformed into bank holding companies In 2008. Five major investment faced closure, sale or restructuring one after another. Specialized management investment banks seem to the end. Early in 2009, the first integrated operation financial institutions, Citigroup of United States, were facing disintegration. The financial integration model which once was the pride of Citigroup formally came to the end. The specialized operation model and the comprehensive operation model seem to be into the plight. But at the same time, under the promotion of Mixes industry management trend, almost all banks in China are positioned as an integrated banking, whose development strategies are also highly similar. Comprehensive management gradually became the realistic choice of China's financial institutions. Some prototypes of the financial holding group are gradually formed, such as CITIC Group, Ping An Insurance (Group), Everbright Group. Is this model the best choice of China's financial business? These phenomena led to the writer further consideration about the change in the financial enterprises organizational boundaries and the select on the management model. What are the reasons for boundary changes of financial business? Which management model is more suitable for financial enterprises, especially the commercial banks? Specialized operation or comprehensive strategy? Is there another form of organization to obtain the efficient of professional operation and the integration economic benefits of scale economy and scope economy? In order to solve these problems, this paper use enterprises border theory and modern financial intermediation theory to build the border selection model of financial business, and analyze the reasons of boundary changes of financial enterprises. The paper analyses the modular nature of the financial industry according to modern enterprise modular theory, and the influence of financial enterprises modular border movements. Based on the modular theory of industrial organization and value chain management theory, the thesis attempts to build a financial enterprise modular production network organization, and point out that reform of modular network organization is the viable development way of financial industry which combines the advantages of specialized operation and integrated operation.The paper constructs a border selection model of financial business by bringing capacity theory of the enterprise and modern financial intermediation theory into the transaction cost economics paradigm. Based on the model, the paper analyzes the different impact of transaction cost from comprehensive management and professional operation. A lot of financial institutions implement integrated management in order to chase the effects of scope economic, but in fact although diversification has brought savings in transaction costs, organizational costs rise faster, losing benefit of scope of economic. On the other hand, specialized operation can bring greater efficiency and economies of scale, highlighting the core competitiveness of enterprises, but the specialized operation is in lower capacity against anti-cyclical risk.Based with modular characteristics of the financial system, the paper pointed out that the modular of financial enterprises is in line with the principle of saving cost and enhancing core competitiveness of financial organizations boundary changes. Modular provides a favorable path for financial enterprises operate specialized management and obtain the effects of scope economic through the network structure at the same time. In order to obtain high operating efficiency of specialized management and effects of scope economic of integrated operation, we recommend that financial institutions can promote the professionalization by modulating, basing on vertical specialization, and build the modular network architecture on the specialized foundation, realize the effects of scope economic through the network structure.The thesis discussed the form path of modular network of bank industry and pointed out the modular path of bank industry can be divided into internal and external value chain modularization. Internal value chain modularity is mainly modular of banking business flow by remodeling banks business process basing customer-centric and decomposing and integrating bank value chain elements into modules. The bank modularity path of the external value chain is mainly to build modular network. Banks focus on specific aspect of value chain by its own core competencies location and implement professional strategy through modular to promote the formation of many core banks and specialized banks. The result is to form the structure of modular production networks.Finally, the thesis made respectively some advice about modular development strategy for China's large banks and medium-sized joint-stock banks according to bank of China actual situation and provided a theoretical basis and practical operation recommendations for China's financial business development and strategic choice and supply certain strategic suggestion on strategic choice of financial reform and financial market development positioning for our government's strategic.