Function Concentrated Under Combined With The Financial Risk Analysis

This paper focuses on Mixed Operation's influence to financial risks, researching on the superiority of Mixed Operation from theory to demonstration, and according to China's national condition, provides the constructive suggestions for policy combined with Chinese reality.The first chapter gives a summarized introduction of the related theory on Mixed Operation, such as purpose, purport, research method and innovation of this article. The second chapter introduces the definition and measurement of financial risks. From the point of vulnerable view on finance, financial risks are impossible to avoid whether the mixed operation or division. Also the second part introduce the variables to measure the risk and explain them theoretically preparing for demonstration in the third and forth chapter. The third chapter collects dates and draws relevant conclusion via horizontal comparison: the relation between Concentration of bank and risk, using panel model on the Chinese mainland, Hong Kong, Macao, Japan's four areas of measurement. This part use Unit Root Process, Cointegration, Granger inspection, Ordinary Least Squares Estimators and Pool panel Fmols methods. By VRR model, Chapter IV vertical compared the two periods which Mixed Operation established before and after on American and Japan respectively. This part demonstrates the reduced risks and superiority of Mixed Operation from reduction of loss rate on bankruptcy of financial institutions, the increased proportion on total financial institutions account for GDP, the growth on bank loans and capital market, reduction on costs and so on. Both the Chapter III and IV are empirical demonstration through the horizontal and vertical comparison on the relationship between Mixed Operation and financial risks, which is comprehensive and the innovation of the whole article. Chapter V analyzed the Chinese mixed operation's status quo, and discusses the adaptability to full mixed operation in China. So in the sixth chapter, we put forward with the positive significance of Chinese mixed operation, on which, supplying the suggestions for policy to the transition from division to corporation. It is found that although two different models of mixed operation in America and Japan, there are more efficiency in mixed operation than division in the same way. Therefore we come to the conclusion that it's good for risk diversification by mixed operation and the risk in corporation is lower than the division. This paper research on China which operates strictly in corporation and other Asian regions which operates in division such as Hong Kong , Macao and Japan. It comes to conclusion that the more function in financial institutions, the smaller the risks are. It also summarizes and analyses Chinese present mixed operation. China has appeared the attempt to cooperate between bank and insurance and cooperate between bank and security under the strict division in China, which now is not increase the risk. Therefore entering the international finance, China should break the old pattern and make a change to mixed operation. It may be a good way to realize the greater success of economical development.