The Study On The Universal Banking In China

From 1950's to now, many western economists have been devoted to the theoretical and empirical study on the relationship between finance development and economic growth. It has been proved that the two factors are positively related. At first, this paper introduces the achievements of these studies systematically. In essence, finance development is the improvement of finance efficiency. Financial innovation is an important way to improve the finance efficiency.This paper tries to analyze the theoretical basis of universal banking from the aspect of finance efficiency. It explains the working mechanism of universal banking to improve finance efficiency from three levels.The commercial banks in china, especial the state-owed ones, don't wok well. The system of universal banking can help improve the situation. But to carry out the universal banking demands several preconditions. This paper analyzes the present circumstances in china, and makes an conclusion that separated-operating is the actual choice for our country. At last, the paper discusses the reforms to be implemented.