Study On Separate Management Of Chinese Banking Industry And Its Risk

It is a world trend that the mixed management of financial circles, this trend has deep historical background. It reflects such a basic fact: as taking precautions against financial risks the separate management out of date, at least in developed country. The financial circles of our country face the changes of two kinds of external environment condition in the present stage: one is that developed countries all give up the separate management mode; second is that China has joined WTO. This text is set about under this kind of background, proceed from a lot of angles, such as scope economics, capital market, resource distribution, market risk, etc, drawing out that our country should also insist on implementing the conclusion managed of separate management temporarily at present. However, we will fully realize the question of " invalid quality" managed of separate management. This text has put forward the corresponding policy and suggestion to this current situation: our country should create the conditions that manage and carries out the transition to the mixed management. But we don't think separate management as the task of top priority in absolute terms and allow some leeway for the finance innovates.This text consists of four parts.The first part has explained the foreign and domestic background of separate management and mixed management. The foreign background is the developed country represented by U.S.A. who divides two developing stages according to the Glass-Steagall Act. The first stage was from the thirties to the eighties. The western developed country had two kinds of banking systems. One kind was managing, assigning to industry management system of dividing industry represented by U.S.A.; another kind was management system of mixing management represented by Germany, which was called the all-round bank system. Second stage is that the separate management system began to be disintegrated after the eighties. Those countries following U.S.A. are giving up separate management and begin to change into mixed management.Now, domestic backgrounds are that our country began to take separate management after market economy initial stage until now. But because the threat brought in change of the international environment, our country has begun to inquire the road to mixed management.The second part has introduced the theory of scope economics. In this part , we set up models and analysis the mixed or the separate management of our bank industry. The model is set up on the basis of translogcostfunction, in which we have studied whether the business banks of our country has scope economics. Calculations through the relevant data that can see that four major state-run business banks have scope economics. There are uneconomical scopes at the shareholding system banks. Because the strength of four major state-run business banks of scope economics is strong to exist and have strong strength, which have some relations with the positions of this and their monopoly. With the entries of foreign banks and the exquisite competition, our banks will face very heavy degrees threaten in the advantages of that aspect.The third part is the analysis of real example. Analysis of the model indicates that our bankers expand the scale through various kinds of ways facing international competition and it is feasible to fully utilize scope economics. Obviously, mixed management is a kind of inevitable trend inside the bank. However, to those who have scope economics, there have risks to expand the scale through various kinds of ways blindly.Large-scale banks can expand their business scope by reducing their operating costs, which is only an essential condition of banks' mixed management, but not the abundant condition. Four major business banks have bank capital of the large definitely proportion because of occupying the favorable position for a long time, easy to form scope economics. Other types of banks have not scope economics because of this or that reasons. Especially banks of shareholding system who have n...