The Development Research Of Financial Holding Companies

With the opening-up of China's financial market,the financial industry are facing increased pressure of competition.As an effective form of organization structure for an enrerprise, to fufill the strategy of diversify,Financial Holding Company(FHC) has shown its strong vitality in the development contray.FHC become an effective method for many countries to improve their competitive position. In China,FHC is an efficient approach to increase competitions and gradually make a transition to the integrated operation under the restrict of separate operation.By compare FHC's development pattern and model in developmented countyies and countriesemerging market countries,,this thesis dedicated FHC is China's realistic choice under the restrict of separate operation, affirmed the advantage of FHC based on economics theories.And analyzes the risk of FHC under different capital structure.The biggest risk faced by financial holding company is internal transaction and monopply risk.For industrial one, it is inner funding support facilities. Then give my suggestion on China's FHC development: legislation first, consolidated supervision, equity registers, encourage competition, control development scale,and take strictprecautions against monopoly.