Supervision Of Financial Conglomerates In EU And The Reference For China

With the deepening of financial globalization and the ceaseless emergence of financial innovation, financial mixed management has cleared away all obstacles and become to be an inevitable trend. In EU, cross-sectoral mergers and acquisitions have been adopted instead of setting up new subsidiary company when facing the financial mixed management trend. Since the 90's of 20th century, the international m&a reach its peak. Such groups, in particular those that combine banking and insurance, have become increasingly important in Europe over time. After the wave of merger, a number of diversified groups combining insurance companies, banks and investment firms have been created and have become of significant importance in the EU. As a new form of financial mixed management, financial conglomerates can gain scale economy, scope economy and consolidated effect by providing diversified services. However, subsidiary companies in groups should face not only the risks brought by their own operations, but also special risks result from complex structures and intra-group transactions. The sectoral supervisory framework does not adequately address these certain risks posed by financial conglomerates. Therefore, it is essential to learn from foreign supervision of financial conglomerates and to ensure a healthy financial market in China. This text started with the status quo of financial conglomerates, analyzed the needs of supervision of them from both practical and academic points. Then, more details and proper references related to supervision of financial conglomerates in EU have been studied.SectionⅠp resented both definition and models of financial conglomerate. Financial conglomerates have been defined distinctly in the light of different supervision institutional arrangements in each state, and a group constitutes a...