Study On Financial Holding Company Supervisory System

In the wave of financial globalization, international competition between financial companies has become fiercer. In order to improve international competitiveness, financial companies from different countries have exceeded the traditional model of separate operation and turned toward integrated operation. At the end of last century, integrated operation has become the mainstream. As a innovation of organization, Financial holding company has become the main organization of financial integrated operation.With China's accession to WTO and the gradual opening up the financial industry, China's financial companies will face fiercer international competition. In order to improve the international competitiveness of local financial enterprises in China, we should choose integrated operation. And financial holding company is the best choice for China to transit from separate operation to integrated operation. In fact, there already exists a large number of financial holding companies. However, our supervision by China Banking Regulatory Commission, China Securities Regulatory Commission and China Insurance Regulatory Commission has lagged behind. The old supervision principles, objectives, methods and setting of supervision organizations are not suitable to crossover business of financial industry and the trend of the conglomeration of the financial institutions. The supervision of financial holding companies is faced with huge challenge. Therefore, the financial supervisory system should change with the reform of the financial management system in order to meet the needs of the development of the financial industry. While improving the financial supervisory system, besides learning from the United States and the United Kingdom, we should also consider the situation in China. We should reform financial supervisory system gradually and establish the financial supervisory system which has Chinese characteristics.