Analysis On The Supervision Of Chinese Financial Holding Company

With the globalization and liberalization, integrated operation has become the dominant trend of financial industry. Financial industry of western countries such as the United States, Japan, Britain, etc, has achieved integrated operation. Through financial holding company, these countries engage in banking, securities, insurance and other business investment activities, and provide comprehensive financial services, expanding profit margins and enhance their competitive edge. In this context, especially China has entered the WTO, financial industry faces increasingly intense international competition. However, financial industry in China has many difficulties facing the tide of integrated operation because of the present system of separated operation and separated supervision. Relative to other forms, financial holding company is the best choice for China's financial industry in the transition from separated operation to integrated operation. In practice, financial holding companies have emerged in China. However, the legal status of financial holding companies is not clear, and the supervision of financial holding companies is still not perfect, the level of regulation is still very backward. The system of supervision is unable to cope with the risks associated with financial holding companies.This thesis is divided into 4 parts. In Chapter I the thesis gives a definition of financial holding company firstly, then compares financial holding company with the relevant forms of integrated operation mode and introduces advantages of financial holding company. In Chapter II, firstly, conducts an in-depth analysis of the risks, and then introduces Taiwan and foreign financial holding company's supervision system. In Chapter III the thesis discusses the development of financial holding companies and the regulatory status in China. Chapter IV brings forward the proposition to improve the regulation of financial holding companies, including regulating financial holding company, improving internal control and external control mechanisms, and strengthening international cooperation. This thesis expects to promote healthy and orderly development of China's financial industry.