A Study Of Approach On Implementing Mixed Management Of Finance And Government Supervision

The nature of competition of financial sector is system competition, and selection of financial system should cope well with government's capabilities of supervision of risks. The financial sector can be categorized into mixed sector operational system and separate sector operational system. The former system highlights efficiency while the latter pays particular attention to security. Each of the two systems holds its own shortcomings and advantages.This paper makes comparison of advantages and disadvantages between mixed sector operational system and separate sector operational system first, and then focuses on the analysis of system transferring and system arrangement of three countries, including the U.S.A., Britain and Japan. The history of the system of theses countries are playing a representing role in the whole development history of the financial system in the world, a kind of accumulation of financial system arrangement and supervision and management experiences in advanced countries, many of which are what we need to learn. Through comprehensive comparison, the author argues that the factors stimulating the government to reform the financial system vary, but to grasp the opportunity is a necessity for this change. The financial system arrangement should take into account the selection of reform methods at an appropriate time, which requires a cautious arrangement. The characteristics of the financial sector have required the reform of financial system and its related supervision and management mode to consider the country's practical situation, the costs and potential risks, and should avoid to fully copy the reforming models adopted by other countries. Therefore, the reform of the financial sector is a relatively complicated reform process, and some defects still exist even in the financial system in Britain, a country with successful financial reform. We should learn lessons and experiences from Britain and formulate financial system framework and supervision and management mode adapted to the development of China's financial sector. Through analyzing the current situation of China's financial sector, and mixed sector operational system as well as the requirement for comprehensive supervision and management in particular, the author considers that the current external pressure and the development tendency of China's financial sector has made mixed sector operational system the only choice in China, and at the sametime we have to make full preparation, scientifically and rationally plan and formulate future measures and development procedures. The author argues that financial mixed sector operational system has the same ultimate goal with that of the government's supervision and management. Considering the intrinsic vulnerability of China's financial sector, a transitional period is required, namely, to experience the period of financial holding corporation model in the future first, and gradually establish complete financial mixed sector operational system later after. Through the analysis of this hypothesized mode, we can see that this mode owns partial virtues of banking systems with full functions and financial separate sector operational mode. The efficiency of the system during this special period may not be superior to the banking system with full functions, but the system gets easier access to risks control with stronger practical operation character. And also in this paper, some suggestions and opinions regarding how to transfer China's financial sector to financial holding corporation are put forward and the author demonstrates that under the complicated practical situation of China, the financial system arrangement and relevant legal laws and regulations arrangement should vary at the different development period, and moreover, the related laws, regulations and policies shall be complementary, and the applicability of the system should be strengthened, so as to help China's financial sector make stable transferring in the development process, and finally to help develop the sector into a complete financial mixed sector operational system.This paper makes the analysis from the perspective of efficiency of the system arrangement and national financial security. In the analysis, the comparative research between the domestic financial sector and financial sector in other countries are made to analyze the advantages and disadvantages of system arrangement with the influence of politics, culture and science and technologies etc. on the change of system and the mode of the government's supervision and management taken into account.