Corporate Governance Of Financial Holding Group

Nowadays, financial globalization and grouplization have become the main andan irreversible trend of development of financial industry; the competition in thefinancial industry has increasingly fierce. There are not only industrial andcommercial enterprises that holding securities,insurance,urban credit cooper-ativesand other financial enterprises of various forms, but also many financial enterprisesthat directly controlling financial enterprises. The main goal of Chi-na’s financialholding group reform is how to create corporate governance mec-hanisms withspecification design and efficiently operation, because the core of the modernenterprise system is the establishment of a standardized corporate governancemechanism. The so-called corporate governance mechanism, in esse-nce, refers to theeffective allocation of responsibilities, rights, benefits of com-pany stakeholders in thecompany’s business process. From this, the corporate governance structure is theorganization structure and morphology of legal pro-perty system, the arrange tospecificate the responsibilities and rights of interest-related parties includingshareholders,directors,managers and workers of corpor-ate, In The new institutionaleconomics, the system includes two categories of formal and informal system thatconstitute the overall implementation framewo-rk of the system, the two types ofsystem distinctive, interdependent and mutu-ally reinforcing, and they can play agovernance role only be compatible and complementary with each other. At present,there are serious shortcomings with t-he formal systems and informal systems ofgovernance mechanisms of financia-l holding group, which caused imbalance andfailure of governance mechanisms of financial holding group; to build a newcorporate governance system is t-he current direction of reform of governancemechanisms of China financial hol-ding group.