On The Mode Of China's Financial Holding Company Regulated By The Laws

The financial service industry plays an important role in the national economy. It includes but is not limited to banking, securities and insurance. There are two operational models in financial service history, separate-operation model and multiple-operation model. The respective organizations to these models are universal banking represented by German banking system and financial holding company, typical of American financial institution. Although separate-operation model once became popular for some specific factors in history, multiple-operation model generally becomes the main option of many countries nowadays with the development of productivity, increasing intensive competition in financial industry, risk control system becoming more mature. The factual financial holding company has already become a kind of market participant in our country under the existing legal framework which is not strictly in accordance with separate-operation model. Comparing to the market practice, the legal system of regulating financial holding company lags far behind. In view of this, there is a need for researching on regulatory model of financial holding company.This article includes three parts:First of all, it precludes with the related regulatory theory on financial holding company. After the analysis of the necessity to supervise these companies, different regulation models will be explained. Meanwhile, the regulatory objects are put forward on the basis of reviewing the status of financial holding company in our country.The second part is mainly the comparison of regulatory model of financial holding company between United States and China. This will be discussed under the background of subprime crisis originated from America. Firstly, it's the introduction of regulatory framework of American financial holding company and its disadvantage found by analyzing subprime crisis lately happened. Then, the article will focus on regulatory model in our country and its drawbacks. Finally, the conclusion is that there is the possibility of referring to experience and lessons from American counterpart for two countries having similar financial background and regulatory institutions.The third part will put forward reasonable proposals to perfect our regulatory model of financial holding company, which will mainly concentrate on regulatory institutions and procedure. These proposals will make reference to aforementioned analysis on regulatory models in the United States and China.The main research methods include: 1. History analysis method. To understand a system, it must find out its background first. As an important method, history analysis can discover the developing trend by observing and comparing the system's different development periods. To know the existing regulatory model of financial holding company, it needs comprehending historical evidence of related regulatory models so that the author can conclude successful experience and lessons to perfect contemporary system. 2. Comparative analysis method. In this paper, when providing suggestion to improving China's regulatory model of financial holding company, the author compares it with American counterpart. Evaluating American regulatory model can give Chinese counterpart useful advice by adopting its advantages and avoid its disadvantage.