The Study Of Universal Banking System

Universal banking system and fragmented banking system are two distinctive banking systems. For many years scholars and researchers from all over the world had been arguing about which of them is better for a country economic development and financial stability, It is occurring now. Banking system continuous changing to adopt the new statement of economics and finance, it will change in the future. The universal banking system had different styles during it shape and development in different countries. China is a developing country and is also a country whose economy is in transition from a planned economy to a socialist market economy. What kind of banking system should China choose? This dissertation deals with this problem. The aim of selecting the study of universal banking system is want to indicate my point by absorbing the research achievements of this field and combining our country actual instance. The main content of this dissertation as follows: Chapter 1 introduced the basic concepts used in this dissertation, such as commercial banking and investment banking, universal banking system and fragmented banking system, three criterions would be used in this comparative analysis. Chapter 2 gives the readers an overview of the typical banking systems in the world the U.S.-type universal banking system and the German-type universal banking system. Their characteristics are discussed in detail. We elaborate the shaping and developing of universal banking system and fragmented banking system in these countries. The reasons for adopting the different systems are analyzed to analysis and compare the characteristics of them and which one is the better. Chapter 3 is the main part of the dissertation. The relative advantage and the relative inferior position between the universal banking system and the fragmented banking system are studied. Different criterions are used in this comparative analysis. From the efficiency of the financial system point of view, universal banking may results in more efficient allocation of financial resources because of economies of scope and synergy gains. On the other hand, universal banking system is more risky than fragmented banking system and tends to abuses of power because conflict of interest is not under control. So it cannot be easily said which is better, universal banking system of fragmented banking system. But after analyzing from the developed country selection and practice, we can conclude that the universal banking system would be the tendency of banking system development. Chapter 4 focused on Chinese banking systems and evaluated our banking system. Although it is not the time for China to adopt the universal banking, As for the future, let us hope that China will adopt the universal banking system. Candidate: Li Ying Speciality: Agricultural Economic Management Supervisor: Prof. Li Youhua...