Legal System Of Supervision Of Financial Holding Companies In China

The financial holding company(FHC) is a company that wholly-owned or holding financial subsidiaries. The FHC hold many advantages, but there are also some obvious flaws. In other word, it face not only the general risks of financial institutions, but also the special risks that many specialized financial institution does not have, which is caused by the structure of itself and equity distribution complexity. In order to avoid the operational risk of FHC, some developed countries and areas strictly regulate the FHC, and have maked financial regulatory legal system. The2008global financial crisis happened because of the accumulated financial risks that caused by the active global activities of financial innovation and imperfect financial regulatory legal system. After the crisis, these countries and areas reformed the financial regulatory system and perfected the regulatory law to avoid the financial crisis recurring. American and England have improved their regulatory system and use the unified regulatory mode. Taiwan,China have reformed to unified and functional supervision in2003, and created effective supervision mode and perfect legal system of FHC. The FHC is choice of our country to comprehensive operational reform in the future. However, our country still use the separate supervision mode, it is hard to adapt the practice of comprehensive operation. Therefore, it is necessary to redesign our financial regulatory mode, and perfect the legal system of FHC as soon as possible. We can learn the reform experience of the above mentioned countries and area to use unified regulatory mode to strictly regulate the FHC, reform the regulatory institutions and perfect the internal management of FHC and information disclosure system.