| Finance is the core of modern economy. Since the end of the 20th century, the world-wide financial innovation and relaxation have been becoming a trend. "Financial Modernization Act" in USA had established a financial holding company system, which is a mixed operation of the organization of financial innovation, which is the inevitable trend of financial development. Financial holding company with its powerful scale and synergies occupies a pivotal position in the financial sector , especially after WTO, the cross-border financial holding companies make the world's financial system closely linked, The trend of the world's financial integration has also become increasingly evident.It is well known that the financial industry is a high-risk industry, if the lack of standardized monitoring, its range will cause a country's financial system instability, seriously will result in severe global financial crisis. For example credit crisis in 2007 in the United States has been sweeping the globe, which is a very good proof of landslides.. After the credit crisis, the world's financial regulatory system has undergone a qualitative change, which mainly reflected in the refinement, strict linkage, etc., commercial banks take the initiative to upgrade the internal management capacity and carefully promote product innovation in order to adapt to regulatory requirements and to avoid the risk of compliance. However, the financial holding company, the more I am afraid that is how to do a good job in the risk of internal control mechanism.Now many financial holding company and the prospective financial holding company has been current, but the current laws and regulations did not give it "name", but also the lack of their specification and supervision. This article from the practical point of view, the main line is to guard against financial risks of the holding company, selecting the value of the regulatory objectives of financial holding company, capital adequacy ratio of the system, firewall systems and internal control system, Seek depth, not exhaustive.In addition to the introduction, the article is divided into four parts.The first chapter focuses on the monitoring value of the financial holding company that is financial security and financial efficiency. Financial security is defined a country in its process of financial development under the conditions of financial globalization, has the ability to resist foreign threats and hit to ensure that the financial system, financial sovereignty is not violated, which is to maintain the normal operation of the financial system and development of a situation. And financial efficiency is difficult to focus on a specific level of study, but the efficiency is divided into micro-finance and macro-financial efficiency, in the long run they both are mutually reinforcing relationship. Both as the core values of the financial holding company's supervision, there is no distinction points, only in different countries at different times and under different conditions, which is emphasis on choice, at the same time to clarify the relationship of the regulatory system and the regulatory objectives, the reform of the financial regulatory system is to more better serve the functions of finance, financial regulation and the ultimate goal is to achieve financial security and financial efficiency.Chapter II deals with the capital adequacy ratio system of the financial holding company, which is a financial holding company or the regulatory agencies to determine their own to resist the required minimum capital requirement when facing the risks. It is precisely because of the "holding" triggering "capital microphone" effect and the financial capital's "leverage" effect, as well as its smaller model of big profits, so the regulatory capital adequacy ratio is needed. Introduced the five principles of how measure capital adequacy ratio and the specific measurement methods, Compared of the United States and China's Taiwan region on the capital adequacy ratio requirements, make recommendations on our country's merger Supervision system of financial holding company which is to develop an accounting system and strengthening the external audit. In the future, our country can also take the United States' model, which is only when the financial holding company including banking subsidiaries, the capital adequacy ratio is requirements, not all of the financial holding companies have to meet the capital adequacy ratio.Chapter III deals with aspects of the firewall system, it is a financial arrangement, by law or the form of self-discipline, which can cut off the inappropriate contact of financial holding group within the banking, securities, insurance and other operational agencies in the capital, operation and information, in order to prevent conflicts of interest, to prevent the transmission of financial risks, particularly protect the banks from other financial institutions' risk infection. It is described why to establish the firewall, the classification of the firewall, compared of the fire wall of the U.S., Japan and Taiwan, the sound of our firewall system must be significant to establish an effective corporate firewall,the fund firewall, business firewall, information and personnel firewall and other measures.Chapter IV deals with aspects of the internal control system, on the internal control system COSO and BIS has its own understanding, because the content of BIS is based on the COSO development, where we introduced the content of the BIS. The three major objectives are operational objectives, information objectives and compliance objectives, the five major factors are the supervision and control culture of the management, risk identification and assessment, control activities and segregation of duties, information and communication and monitoring evaluation activities and flaws corrective. It is because the financial risks caused by the internal control system, it need to build internal control system in accordance with the procedure. The internal control system should be "three-class two-tier" model and take appropriate measures in accordance with international standards. In order to improve our internal control system, we have to clear the efficient,transparent and legitimate three objectives; it is necessary to establish a sound organizational structure; it is necessary to guarantee the independence of the audit department; the implementation of post responsibility system; in different business or the different segments of the unification business have different personnel responsible for ensuring the supervision of the business check; establish an effective early warning system of internal controls and so on.
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