On The System Of Enhanced Obligations Of Financial Holding Company

After entering into the WTO, the development of china′s financial business is facing huge opportunities and challenges that never happened before. The financial business is dropping the separate operation, and turning to the mixed operation. The financial holding company is the best choice to realize this transition. The organization framework of financial holding company comprehensives the advantages of separate operation and mixed operation. It also can bring the scale merit. However, the financial holding company is not perfect. It can induce several risks, including the risk caused by its stock structure and the risks caused by its financial character. The foreign practice proves that the juristic personality-denying can not solve these risks successfully. There has to be a special system to solve these problems, and , this system is the enhanced obligations of financial holding company. The enhanced obligations of financial holding company come from America, and the system of America is the most mature so far. The enhanced obligations come into being at 1970s . During several decades, The enhanced obligations of financial holding company has developed into a comprehend system which include many specific systems and it does quite well in supervising the financial holding company. These specific system mainly are the source of strength doctrine, close bank policy, cross guarantee provisions, and capital restoration plan. Of course, the development of these systems is not smooth. They experienced the vehement questioning and discussing. The system of enhanced obligations of financial holding company has great advantages, such as reducing the risks of systems, promoting the inter-supervising of financial holding companies, reducing the information dissymetry, promoting the apperance of the new model of financial supervising, and so on. However, like all systems, the system of enhanced obligations of financial holding company also have some limitations, such as rising the capital costs and depressing the efficiency, brusing the investing positivity, inducing the differentation of the supervising system, and so on. But it is believed that these problems will be resolved with the development of the system of enhanced obligations.Although the system of enhanced obligations of financial holding company come from the practice, its appearance and developing is basing the advancement and innovation of the theory. The system of enhanced obligations of financial holding company has comes into being and developed under the background of the socialization of civil law, which accord with and make for realizing the basic principle of mordern civil law, such as fairness, good faith and prohibition of rights abuse. Related to the domain of financial holding company, the theory of"quasic-agency approach"is the legal principle base on the justice of enhanced obligations of financial holding company, which considers the subsidary company as the agent of parent company and has the parent company taken the obligations of its subsidary company under particular situation .After definiting the theoritic basic, analysing the constitutive requirements of enhanced obligations of financial holding company is more important. The constitutive requirements of enhanced obligations of financial holding company can be divided into two parts: the objective and the subjective. Actuall control and case stated by law is the objective constitutive requirements of enhanced obligations of financial holding company, while the no-fault principle should be the subjective. Finally, after deeply researching, we should build our own system of enhanced obligations of financial holding company .Specificly speaking, first, we should build the environment which fit the system, including promoting the changing of the operating model of financial business, promoting the lawmaking on financial holding company, changing the existing supervising model. secondly, on the referencing from the foreign practice, we should build our system of enhanced obligations of financial holding company in such aspects: supervision, requirements of applying, procedure, legal liability.