The Separate Operation And Mixed Management: The Management System Of China's Banking Industry

The waves of financial freedom swept western banking industry at the end of 70s and the beginning of 80s. All banking institutes had begun their diversifying history from then on and they converted their business module from the single business to the multibusiness. . Their business covered stock share trading. There was a trend of financial freedom and globalization in banking world. The banking institutes in Western Europe and Japan has broken down the traditional barriers for the industry. The trend of diversification could be easily observed. The freedom has proceeded faster than ever before. In November of 1999, the signing of 憈he law on financial service?indicated that pioneers of single-based module and its followers had to disregard this regular. As the proceeding of China joining WTO, to be a single business or multibusinesses has become a hot topic in banking industry in China. How to choose a mechanism adapting some foreign experience to fit in Chinese economic reality? How to manage the tension between the present and future demand? How to select a better evolutionary road? There are huge amount of arguments about those questions in banking industry. This dissertation starts to review the evolutionary history of banking mechanism. The status-qua and trend will also be analyzed. Starting from literature review, the emphasis will be focused on exploring of banking mechanism. In accordance with the status-qua of Chinese banking industry, it will conclude that single business is suitable choice for Chinese banking mechanism at present and multibusinesses will be of future trend This dissertation consists of four parts. The first part introduces evolutionary history of banking industry in USA, Japan, UK and German. It will provide insight into the changing process, drives and characteristics of tow types of banking mechanism. The changing process of American banking mechanism can be described as multibusinesses-single business- multibusiness. It is characterized that it experienced 60 years from single business to multibusiness. Multibusiness was realized by the control of financial holdings over SBU in different industries. The developing history of Japanese banking industry also changed from single business to multibusiness. It was featured with allowing financial institutes to deal with all sorts of financial products in all industries and the direct involvement of banks in other financial fields. In UK, there was a strict rule on single business at early stage. Since 1 970s, multibusinesses of banking institutes emerged and shared the some same characteristics as American. The German bank is all-functional. All-functional banks have contributed a lot to the economic development of the country and are gradually becoming global diversified financial group. The second part will look at advantages and disadvantages of two mechanisms respectively. The comparing analysis comes from stability, efficiency, and matching and best choice of evolutionary track. In general, the analyses will emphasize on stability and efficiency comparing advantages and disadvantage of the two mechanisms. The comparative analysis concludes that each has its own stability and efficiency. In terms of phases, after comparing different economic regulation, economic conditions and the status qua of financial development, it is summed that different countries should have its own operation system. Generally...