China’s Financial Holding Group Risk Control And Standardize The Development And Research

With the new round of financial crisis,the party and the country’s economic focus began to focus on the reform of the financial regulatory system,as an international trend of the financial holding company has become widespread in recent years,the focus of attention.In legal circles,around the financial holding company’s legislative discussions are increasing.Financial holding company regulated financial supervision as a socialist legal system is an important component of its own has a very important theoretical and practical value.Also,because in such a transition period for the legislative work of the Financial Supervision Act,even given the financial holding company legislation with great connotation.This paper attempts to financial holding companies basic theory to financial holding companies and traditional financial organizations for the analysis of different dimensions,combined with the current situation of China’s basic financial markets to explain the financial holding company shall have legislative direction Supervision Act.I hope that through this discussion,a financial holding company to provide a directional legislative proposal that is in the corporate governance structure,risk prevention,and regulatory mechanisms foot effort from top to bottom.Financial Group is present in the financial markets,financial institutions,among a cluster.Internally,it is more perfect organization,a financial institution controlled by the other company,and the corresponding financial services in the internal allocation among subsidiaries.Financial conglomerates refers to the phenomenon of the rise of financial conglomerates.Financial holding companies means: Group financial industry-based,"generally a parent holding company of financial enterprises,wholly owned by(or controlling)specialize in certain specific business(such as commercial banking,investment banking,insurance,etc.)the various subsidiaries." Rely on internal coordination mechanisms,financial holding companies compared to traditional financial institutions also have the ability to handle a variety of financial services.Finally,the international business can bring global information advantage,making a financial holding company on a global scale can be fully mobilized to deal with complex types of resources market information,enabling the development of a benign global financial markets to help push.Such as the expansion of British bank HSBC todirect action by the German universal banking business model stimulation,eventually forming a huge financial multinational group.Our current legal system,the financial holding company has many problems,specifically,mainly in the corporate governance structure,risk prevention mechanisms,and financial regulatory system problems in three aspects.In the economic and social transition,born out of the old planned economy in China under the financial holding company born with a distinctive character of the government and state-owned.The financial holding company is a collection of different types of financial services,but also has a high degree of diversity and complexity.Coupled with China Finance Act for the financial holding company has not yet formed a sound regulatory system,the burgeoning financial holding companies have problems such as ill-defined property rights,Legislation is not uniform,incentive mechanism behind the asymmetric information problem.As a financial holding company faces risks from internal and external risks to analyze two levels,the first internal risk exists related transactions,the internal conflicts of interest and financial monopoly and other issues;secondly,external risk exists complicated regulatory model,the external conflict of interest,as well as double counting of capital qualification such as the four major problems.As for the financial holding company on regulatory issues,it can be summarized as the first,lack of financial regulatory legislation,the financial holding company legislation must be put on the agenda;Second,the existing regulations on financial regulatory financial holding company has many deficiencies.Combined with the financial holding company’s relevant basic theory and basic national conditions of China’s financial market,the author attempts to the aforementioned three main issues put forward their own countermeasures.To improve the corporate governance structure,we must first clear legal financial holding company and its subsidiaries rights and obligations;secondly to ensure that the financial holding company’s shareholding structure diversification;finally improve the financial holding company managers incentives.For improving the financial holding company’s legal risk prevention mechanisms,in the internal risk prevention,the first,strictly regulate the financial holding company’s related party transactions.Second,to the financial holding company within the strict control of conflicts of interest within the specified range.Third,by strengthening antitrust laws and regulations to adjust the basic financial holding company monopoly.The external risk prevention,the first elementsof a unified regulatory approach financial holding company system.Second,the introduction of corporate personality denial system.Third,the establishment of regulatory capital platform.Fourth,a clear financial holding company’s eligibility review mechanism.For the financial holding company’s regulatory measures,I think,first of all,to develop a special "Financial Holding Company Act",and supporting the introduction of the relevant regulations.Secondly,the construction of an appropriate regulatory framework.Again,to strengthen the financial holding company executives qualification.