Study Of The Regulatory System Of Financial Holding Company In China

The passage of the Gramm-Leach-Bliley Financial Modernization Act in the United States in November 1999 repealed the Glass-Stea-gall Act of 1933. The Act not only reflects a historic change in the US financial sector, but is also a milestone in the financial development of the world. In addition to the United States, Britain, Japan and other countries, and China's Taiwan region have abandoned the separation of the operating system with the financial holding company model. In this context, especially after China has entered the WTO, to select the integrated operation is a general trend. The financial holding company is China's operators from sub-optimal choices to the operation mode. Relative to other forms, financial holding company is the best choice for China's financial industry in the transition from separated operation to integrated operation. At present, financial holding companies have emerged in China, but the supervision of financial holding company is the lack of a complete set of theories. I hope on make certain regulatory efforts by studying the supervision of FHC.Through the Comparative analysis methodology and historical analysis methodology, these are four chapters in the paper. The first part is an overview of the financial holding company. It not only elaborates the definition and the species of financial holding company, and analyses its advantage and possible risk, but also sets forth the importance and the theoretical basis about the supervision of financial holding company. In the second chapter I compare the supervision of financial holding company in foreign countries (regions). I introduce the legal system of supervision of FHC in the major countries and regions (The United States, Britain, Japan and Taiwan). In addition, I analyze its characteristics and reveal its universal significance with great inspirations; The third Chapter I describe the development of financial holding companies and regulatory analysis of the supervision of financial holding company. I describe the status of the financial holding companies, discloses the current situation of the supervision of FHC and existing problems; The fourth chapter is a key chapter. It sets forth the principle of the supervision of FHC and puts forward some legal designs on supervision of FHC which suits our country's conditions, including designing the legal system, the supervision on market access and exit, capital adequacy requirement, the supervision on interaction transaction, the supervision on risk control, improving the financial Holding company management structure, and strengthening supervision of international cooperation.