The Researh Of China’s Financial Conglomerate Supervision Model

With the further development of financial liberalization andderegulation, financial industry move towards comprehensive and mixedoperation. Financial conglomerate emerges in this background anddevelops vigorously. As a kind of financial innovation, financialconglomerate bring new energy to the financial industry, but theircomplex structure, diversified products produce a series of risks, andcaused the regulatory puzzle. The financial conglomerate group mixed,subsidiary separated management business model challenged ourcountry s Spe Cialized Supervision model. This paper proposed severallegislation suggestions about how to improve our country s financialconglomerate supervision model, by means of comparing the three kindsof international financial conglomerate supervision model and respectiveadvantages and disadvantages. It concludes that, Umbrella Supervisionmodel is appropriate for our country, and then gradually transform to the Consolidated Supervision model. In the setups of supervision model,China Banking Regulatory Commission, China Securities RegulatoryCommission, China Insurance Regulatory Commission all act asFunctional Supervisor, and People s Bank of China acts as UmbrellaSupervisor in charging of the entire financial conglomerate. Finally,enacting financial conglomerate act can promote the development offinancial conglomerate and improve the regulation efficiency.