The Analysis Of Chinese Supervision Over Financial Holding Company

In the 1990's, the wave of the financial mixed management emerged again, mostly developed countries such as American, British, Japan gave up the separate system and permitted the financial institutions to take different financial business in banking, security, insurance, trust fields. In recent years, there is an obvious trend that different financial institutions cooperated and joint management in different financial business under the separate system in China. During the exploration of an efficient mixed management in different financial business, most experts focus their eyes on the financial holding company. However, the financial holding company contains many potential financial risks, for the lack of pertinent law or statutes to define and regulate financial holding company, how to eliminate those financial risks and then insure and promote Chinese financial industry develop continuously, steadily and safety? It requires supervising the financial holding company prudently and efficiently. This paper will introduce the financial holding company in a general degree and analyze its'potential financial risks, then learn the successful supervising statute and experience from the overseas so that could put forward some suggestions for the improvement of supervision on Chinese financial holding company. This paper integrates theoretical researches, legal economic analysis, positive researches and comparative researches to analyze Chinese supervision on financial holding company. The paper has four chapters. The first chapter is the general introduction to financial holding company. This chapter starts from the description of its definition and types, explains why emerged the financial holding company from an economical angel. At the same time, this chapter introduces the development of the financial holding company in China-analyses the reason of the financial holding company's development and introduces several types. The second chapter is to survey the risks of the financial holding company and elaborates the supervision principle on the financial holding company. Through to analyze the risks faced by the financial holding company and the special risks encountered by Chinese financial holding company, we realize that it is very important and necessary to supervise the financial holding company. The following is the elaboration for the supervision principle on the financial holding company. The third chapter is the introduction of the supervision statute and experience in overseas. This chapter chooses the supervision statute and experience American, British and Japan to introduce. After a brief introduction to the three countries'supervision system, this chapter discusses the three countries'supervision over the financial holding company respectively so that could put forward some suggestions for the supervision over Chinese financial holding company. At last the paper discusses the supervision issue of the financial holding company. Concerning the Chinese projected financial supervision system, we adopt a combination of the separate supervision and consolidated supervision on the basis of American umbrella supervision system. Accordingly this paper forwards some suggestion on the supervision rules.