Study On The Firewall Legal System Of Financial Holding Company

With the development of financial liberalization and theinternationalization of financial institutions, large financial institutionsoperating in a segregate management to mixed management has become amajor trend. Financial holding company, an important organizational formin this trend, is the inevitable product of financial innovation. The financialholding company is bringing the advantages of scale economy, scopeeconomy and synergistic effect, however, at the same time the resultingconflict of interest and risk cannot be ignored. Since2008, the UnitedStates and the world suffered the most severe financial and economic crisissince the Great Depression, which has relation to the risk brought byfinancial holding company under the loose operating system to a certainextent. The construction of the firewall legal system can effectively guardagainst conflict of interest, control risk contagion, and has significantmeaning for the development of financial holding companies.Foreign countries and the Taiwan district have successively passed therelevant legislation about the financial holding company, to establish afinancial holding company firewall legal system. In China, there have beenvarious types of financial holding companies, but the risk awareness is low,lack of internal control mechanisms. In addition, due to the blank of ourlegislation, these financial institutions are at the legal and regulatoryvacuum. Therefore, we should learn from the advanced firewall system experience, to speed up the establishment and improvement of China’sfinancial holding company firewall legal system. Full text expect prefaceand conclusion, is divided into four chapters.Chapter One: Basic theory of the firewall legal system of financialholding company. Introduce the connotation, characteristics, and the legalnature of the firewall’s legal system, compare the Glass-Steagall wall,Chinese wall and firewall legal system, summarize the main academicpoint and related dispute about the firewall legal system, and discuss thenecessity and function of the firewall legal system.Chapter Two: the legal system design of financial holding companyfirewall. Discuss on how to build a financial holding company’s firewallsystem, including the building value goals and principles the main contentsof the firewall system and the operational mechanism.Chapter Three: The mode of firewall system and legal practice inforeign countries and Taiwan region. Focus on the firewall legal system ofthe United States, Germany and Taiwan region. Compare and analyze thedifferent characteristics and practical experience about firewall system invarious countries and regions,Chapter Four: The establishment and improvement of China’s financialholding company firewall legal system. Introduce the development ofChina’s financial holding companies, as well as the firewall system, and putforward specific proposals on how to establish and improve China’sfirewall legal system.