The Development Of China's Financial Holding Company Model

Since 20th century the 80's, financial innovation continue to blur the business boundaries of different financial institutions, commercial banks are facing an unprecedented crisis of survival. The country which financial sub-industry to gradually shift the operation mode. With the economic globalization, the deepening of the degree of financial liberalization, the mixed operation has become an irreversible trend in the financial industry. Since late 2003, with the active efforts of the Government , China's state-owned commercial banks were joint-stock reform. However, advanced management experience and have a business full range of foreign investment compared to large banks, there are still a big gap. So, just to rely on joint-stock reform, and a breakthrough can not be completely separate operation, the separation of the institutional arrangements for supervision. According to international experience and China's financial industry the reality of the situation, construction of commercial banks as the major financial holding company should be to gradually achieve our country's financial industry the reality of the operation mode selection. The full text can be divided into five parts:Part I: Preface. In this section, First of all the topics introduced in this article background, theoretical significance and practical significance. Secondly, the paper introduces the function of financial intermediation theory, financial deepening theory. Summed up in two parts some scholars at home and abroad of the financial holding company and the latest developments in research. Then introduce the structure of this paper and the innovation in this article.Part II: An overview of the financial holding company. In this section, First of all, this part introduct the financial holding company background, and the concept of financial holding companies to do one clearly defined. This article holds that the financial holding company is at the same time in banking, insurance, securities and other financial institutions as two or more subsidiaries, and its control over the actual implementation of the company. In addition, the introduction of financial holding companies and classification of related concepts. On this basis, this article summarizes the financial holding company to draw the three features, one of the most prominent feature is the Group Holdings, a joint operation. Finally analysis of the financial holding company's operating strengths.Part III: Domestic and foreign financial holding company and its development model to China. In this section, we take the United States, Japan, the United Kingdom as an example, to introduct the different national financial holding company of the development process and development. The majority of foreign financial holding company in the development process of their use of business model is a wide range of organizations, both in common, there are also differences. By comparing the analysis of our country and the development of financial holding company must have the inspiration. Currently, active research and the formation of our country in line with the national financial holding company model, adopted a series of response measures, to maximize the advantages of a holding company is to promote comprehensive management of China's banking industry an important strategic step.Part IV: China's development of financial holding company status and analysis of existing models. First of all, an analysis of our country the development of financial holding company status, at this stage of China's financial industry is still in the development of comprehensive management of the initial stage, China's financial holding company's internal development is very uneven, resources allocation of a lower relatively and poor international competitiveness. Secondly, the introduction of China's financial holding company type of existence.There are three types: the commercial bank-based financial holding company formed to non-bank financial institutions, mainly the formation of financial holding companies, investment groups have formed organizations of industrial capital. In addition, there are policy-oriented financial holding company and a number of local government is through the holding of local city commercial banks, trust companies, securities companies to restructure in order to set up financial holding companies.Part V: A commercial bank-based financial holding company to develop our country. First of all, from our country adopted the policy and financial market analysis, come to our country has a large commercial banks have set up financial holding company of the objective conditions. And our country can put forward a progressive development model or mergers, acquisitions, joint-venture model, the formation of financial holding companies. Finally from the relevant institutions to improve financial holding company's internal control mechanisms and reform of China's financial regulatory system proposed by the three financial holding companies to promote the development of our country's countermeasures and proposals.