Modern Financial House And Exchange Shop Comparative Research And Enlightenment

It is well known that financial house and exchange shop are two summits in the history of thedevelopment of China’s finance. This article compares and analyzes the similarities and differences of themin four aspects of the origin, organization system, business operation and the reason of the decline. On theorigin, financial house appeared earlier which engaged in the management of currency exchange at its veryearliest stage. Exchange shop began to sprout in nineteenth Century twenty or thirty. Exchange shop wasmore advanced than financial house in terms of organization system. Exchange shop introduced theseparation of ownership and management rights earlier than financial house. The establishment of thehuman capital stock system stimulated the enthusiasm of the staff. The salary of employee in financialhouse was very low. But financial house allowed employees to overdraft which caused the loopholes incorporate governance of financial house. Financial house practiced cronyism in the personnel system. Theexamples that its manager handed on from father to son were too numerous to enumerate. By contrast,exchange shop established the advanced talent selection system. Exchange shop branches were all over thecountry, but financial house was not set up branch offices. So exchange shop was better than financialhouse in business development and capital accumulation. In the field of business management, financialhouse and exchange shop made the breakthrough in their respective business areas and began to engage inloan business, establishing the links between each other. But they also had their own service objects. Thedevelopment and growth of financial house business were closely and inseparably related to interbanklending from exchange shop. The decline of financial house and exchange shop not only had their owncomplicated situation, but also had the common factors. Based on the above comparative analysis, weshould summarize historical experiences and lessons, especially in the situation that global economy hadsuffered financial crisis, and put forward reference for the development of China’s financial industry.This paper adopts literature study method and comparison method and grasps the essence ofthings using the comparative analysis. Previously experts and scholars did more research on financial houseand exchange shop separately lacking the document literature which did comparative study. Studies ofclues in time had the most cases in one of the few comparative study. This paper adheres to highlight the key. Several common issues in the study are done special contrast. This paper has very strong pertinenceand provides a new angle for the research of financial house and exchange shop.