Separate Operation Under The Conditions Of The Banking Regulatory Rules Evolution

The issue of Gramm-Leach-Billey Act was regarded as a watershed event in the financial industry. The mixed operation among all the areas provides a further and prosperous development for the market. In the past 60 years, the U.S. financial market was dominated by separated operation model which made great contribution to materialization and maturation of financial system. By reviewing the history, research on the separated operation in the financial market would benefit not only for the U.S. but also for those developing financial markets.The paper first reviews the theories of banking regulation, which plays a vital role in the financial regulation, and then states different measures applying for different stages in the past 60 years. For the different periods, the market demand and financial innovation challenge the regulation system continuously. By the analysis of banking crisis, it can be easily found that whether the regulation rules work efficiently and effectively. As the outsider power of the financial regulation, regulation rules values highly as well as the double regulation system, taking the banking institution under the control from both the federal and state governments.The separated banking regulation model made contribution to succeed of financial market. While, as a successful model of the financial market, it will benefit China from the perspectives of banking regulation. At the end, the paper gives a conclusion from three aspects: regulation model, regulation measures and insurance of rules, making suggestion for the development of China's financial regulation.