A Study On The Mode-choosing Of China's Financial System

Finance is the core of modern economy,and financial system is the complex of financial institutions and financial markets. With the development of human society, financial system is subsequently developping ceaselessly. In particular, since 20th century 70's, the global financial industry had a series of unprecedented change, the financial system appeared significant changes in two aspects in some industrialized countries,one is, the status of commercial bank in financial system is relative declining; the other is, the development of capital market is very fast, it is becoming more and more prominent in the financial system and the economic development. As banks'relative market share gradually reduce, many scholars put forward the judge of "bank is dieing".Long-term since, many scholars think market-based financial system is a better and advanced mode,due to its higher financial efficiency. Yet, the outburst of U.S. subprime crisis in 2007, no doubt explains that market-based financial system is not perfect and flawless, bank-based financial system also has a certain distinct advantages. Since then, the discussion about which is more excellent of the two heats up again.As we all konw,our country's economy is developping very rapid, and our comprehensive national strength is also increasing at a high rate. If we want to keep the core competitiveness in the global economy, the importance of choosing a suitable financial system model is self-evident.Therefore.in this article,we attempt to deal with this subject from the perspective of financial functions, getting rid of the constraints of financial institutions theory, seeking the essence behind the superficial phenomenon.Firstly,we will trace the development course of the two typical model of financial system and do a comprehensive analysis and comparison of the two financial system.Then, we will make a thorough discussion about China's financial system mode, combining with the status quo of China's financial system.In the end,we will put forward the optimization of the financial system- "complementary type" financial system,and give some suggestions to perfect it. We believe this article will have both theoretical significance and practical meaning to firm the direction of China's financial reform and development.