Research On Risk Conduction Mechanism And Control Countermeasure Of Financial Holding Company

With the development of world economy, finance innovation blooms once again. Financial holding companies will become the primary way of finance comprehensive operation in the coming time and also the development way of separated operation to mixed operation in China. It has advantages such as scale economy and scope economy, while it's a double-edged sword at the same time, the tangible or intangible connections, such as related transactions, fund stream, information stream and resource sharing among the entities inside the groups of financial holding companies, will lead to their inherent conduction of risk objectivity, particularity and complexity. Therefore, taking the risk conduction mechanism and its control solution of financial holding company as our research focus has great value and significance on both theory and practice.Based on the theory investigation and discussion, demonstration research and case analysis, this paper makes great efforts to explore the inherent mechanism and characteristics of risk conduction in financial holding companies, concerning that, we designed and proposed corresponding method to avoid and control the risk conduction inside financial holding companies. The thesis has seven chapters. Chapter 1 and 2 are the introduction and theory of our paper, chapter 3 to 5 is the core part. In chapter 3, after the analysis of the developing situation of the domestic financial holding companies, it summarized the risk sources from general business layer, finance risk source and group management risk source; in chapter 4, based on the definition, type and a international case of the financial holding company, it analyzed the main reasons of risk conduction. In chapter 5, using the model and method from easy to hard, after analyzed the series conduction, parallel conduction, the combination of series and parallel of risks, we built models to figure out the characteristics of risk conduction inside risk holding companies. Chapter 6 is the solution part, in this chapter we proposed the control factors of financial holding companies, and based on them we brought forward some control solutions. Chapter 7 is the conclusion.