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On The Inevitability Of The Change Of China's Banking Industry To Mixed Mode

Posted on:2003-08-21Degree:MasterType:Thesis
Country:ChinaCandidate:Y LiuFull Text:PDF
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The theme of this paper is dissertating that the universal-banking system is the inevitable choice of China banking. At the same time, there is also given the suggestion of how should we turn to universal-banking system in this paper.Banking that includes not only services related to savings and loans but also investments, securities business, insurance, trustee services, even enterprise management, import/export trade etc., that is what we called universal-banking system. This is most common in European countries, as a representative universal-banking system, Germany banking has achieved complete success.The system is prohibited by law in the P.R. of China. Although, in recent times there has been much market pressure in the P.R. of China for change. Especially after the P.R. of China has been the leaguer of the WTO. The uptrend of adopting universal-banking system of international banking has strongly impressed China. The banking are appealing to the government for deregulation, and the same opinion is also expressed strongly by insurance and securities market. An undercurrent of cooperative business operation between the banking and the other financial setup is now springing up in China. In pace with the development of China banking, the hardware of commercial banks are modernized and a great deal of highly qualified professional are collected, thus created favorable conditions to the China banking to adopting the universal-banking system.The essential condition of universal-banking system is that the central bank should take effective regulation, and the banking also should take effective inner-control system to reduce the risks that would be produced by adopting the universal-banking system. These are key issues in the China banking. That is a task of top priority to improve the methods of regulation.It's the inapt mode that carrying out the radical reform of China banking, for it's deleterious to the whole financial system. The practical plans to turn to universal-ban king system should be progressively, we could be transformed step by step. First of all, to conduct tests at selected points; secondly, to deregulate step by step on the basis of the tests; and lastly, accomplish the universal-banking system in China by means of the annexations among the banks and the other financial setup. It deserves to be mentioned that the financial holding company was appeared recently and it should be a new orientation in the China banking.
Keywords/Search Tags:Inevitability
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