| Since 1980's, the innovation of financial system, which was changed markets' structure and institutions' mode of financial services deeply, was influenced the entire world, and one of the important characters was financial diversification. After practicing financial separation system several decades, the western world was regressed to financial integration system regain. However, today's financial integration system do not same as the former days', former days' failure was the result of unrestrained freedom. Financial services in nowadays are well developed, and financial integration system is progressed in an orderly way, it is emerged as the conditions required.In initial stages of Chinese financial markets, all banks participated in securities and trust, and it formed financial integration system. In another word, China's securities cannot grow up without supporting of banks. Owing to lack of effective restriction, it's caused chaos of financial system when bank credit fund entered securities market. Therefore, Chinese government issued the regulation of financial separation. Along with the change of international financial circumstance and development of China's economy, financial integration has showed more advantage and necessity. For the sake of prospering financial markets, Chinese financial management department have gradually released strict supervision of financial separation and established a series of policies that were propitious to integration of bank, securities and insurance. All above make it becomes a trend that financial separation system turn to financial integration system. But it doesn't mean that the condition of practicing financial integration have matured in China, in fact, the current financial condition of our country cannot reach the requirement for financial integration, especially in corporation governance, financial supervision, financial law system and financial market, etc., these problems need to resolve urgently.There have three modes of diversified financial conglomerates in the world------universal bank, financial holding company and non-financial holding company. Each mode has advantages and disadvantages. No matter which mode is adopted, it must be fit for the situation of a country. They will be faced with selection when Chinese financial institutions turn their steps to financial integration system. According to financial system's characters and the situation of our country, we'd better select the mode of financial holding company. The process of transformation must be in proper sequence, otherwise, it will bring fatal damages to our country's economy.The transformation of Chinese financial system is a long-term process. Financial separation system is still fit for our country and will not be changed in a long future. The emphasis is to build financial basic installations in next few years, which prepare for financial integration.According to Robert C. Merton and Zvi Bodie's theory of functional perspective and the change of western financial system, this paper try to find out the rationality and feasibility of financial integration system, in the meantime, to discuss the way and procedure of Chinese financial system's transformation, and to analyze main problems during the transformation.The paper consists of five parts. Starting from introducing development of financial system in western nations, it tries to explain rationality and inevitability of financial integration system by analyzing the theory of financial functional perspective. It describes the mode of diversified financial conglomerates and the supervision's requirement of financial integration. The paper also discusses proposals and countermeasures of financial transformation according to the financial situation of China.Part One The Trend of Global Financial System It describes the evolvement of western nations' financial system and introduces the trend of financial integration.Part Two The Causation of Financial Integration System It introduces and analyzes financial functional per... |
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