A Study On The Development Of Universal Bank In China From The View Of Innovation Of Bank System

This paper tried to use the theory of institution innovation, combined with the banking system theory to put up a preliminary frame of institution innovation theory for banks, by which disclosed the origin and evolution of universal banking system in western countries. Also, it provides a theoretical foundation for banking system reform and for the innovation and development of the universal bank in China.The New Institutional Economics has two theoretic branches, one is enterprise's theoretical economics based on transaction cost, represented by Ronald H.Coase, which includes the theory of transaction cost and the theory of property rights. Another one, as represented by North and Lance E.Davis, is the theory of institution innovation, which is combined by the institution theory and the innovation theory (Joseph A.Schumpeter) . They provided us with the model of institution innovation under the general condition. Based on this, combined by the concrete banking system theory, the author provides with the models of institution innovation of the bank under the condition of market economy and the condition of carrying out the transition from planned economy to market economy separately.The universal bank, or called comprehensive bank , means a bank which is not limited by the financial dividing policy , can manage all kinds of financial transactions in an all-round way . Its development is the circulating accumulation result of countless institution innovations of the banking system. A history that the bank develops is a history of institution innovation of bank. Because of the influences of different economic development level, economic structure state, the economic structure of thesociety and politics and the inertia route of banking system development determined by social preference structure which is formed by certain historical culture background, the universal bank has formed two typicaltypes: the universal bank based on capital-market-financial holdinguniversal bank in U.S and the universal bank based on bankintermediation-inside comprehensive management universal bank inGermany. These two types each have pros and cons, but the trend of merging each other has appeared in further development.The growth of financial industry has experienced a difficult and arduous course in China, It hasn't so developed a capital market in U.S, nor so strong a banking system in Germany. Under the economic condition of carrying out the transition from planned economy to market economy, the supervisory authorities has implemented a strict segregation system, which has determined that the development of the universal bank can only rely mainly on financial holding universal bank in our country. Once the opportunity ripes, it will merge with the international trend, financial holding universal bank and inside comprehensive management universal bank develop simultaneously.