International Financial System Mode Compared With China's Best Choice

This paper firstly analyzes from the historical origins of the bank-basedfinancial systems in Germany and Japan and the market-based financial system inthe US and UK to take conclusion that financial system is decided by the conditionof economy,policy,law and phase and so on. The only purpose of selecting financialsystem types is serving for developing economy, so one of the financial systemtypes is not better than the other in itself, and the key is applicability. Whenselecting financial system types, Chinese should consider all of the situations.Now, the typical character is bank-marked in Chinese financial system, but thereare many problems such as bad debt ,low efficiency and so on, which indicatesthat Chinese bank industry must be reformed. Because banking industry in Chinais more important than in other countries, keeping steady of banking industryhas more meanings. Meanwhile we should see that the capital market in China isalso necessary, especially in financing small corporations and dispersing risk.Based on analyzing Chinese actuality in finance, the author advances that-- themixture of the two financial system types may be the optimal selection in China,and put forward several measures in establishing it.