The Study On Finance Firewall System Of China In The Trend Of Mixed-Operation

The outbreak of the financial crisis in 2008 sets off an alarm bell to global financial industry focusing too much on excess profit and ignoring the prevention of risk.Under the background that mixed operation has become the main operating pattern of the most countries,the big financial institutions must strengthen to guard against the negative effects such as risk contagion and conflicts of interest when enjoying the magnificent improvement of efficiency caused by synergies and economies of scale.So It is of great significance to establish appropriate financial firewall system.Compared with foreign financial firewall system which is rather mature,the financial firewall system in our country is still in the development stage,the existing laws are not perfect,the regulators are inefficient and the Internal control mechanism of the financial holding company is missing.So China should refer the experience from the financial firewall system construction of other countries in order to establish a financial firewall system which is suitable for our national conditions as soon as possible.Firstly,this article has reviewed the researches of mixed management risk and financial firewall system made by domestic and foreign scholars and then elaborates the theoretical basis of financial firewall system from the point of the mixed management and supervision.Then introduces the origin,the connotation,the classification and the function in detail.Next,the article analyses the the experience and shortage of the american financial firewall system of each stage since the 1930's based on the three major laws and summarizes the experience and shortage of the american financial firewall system.And then this paper summarized and evaluated the status quo of financial holding company since the beginning of the 21 century and the construction of the financial firewall system in China.Later,combining the guarding against financial risks the spillover with financial firewall system and measures the effectiveness of firewall system of our country with the risk spillover model CoVaR,The result shows that the financial firewall system in China can play a role in preventing the spillover risk in financial market on the whole,but the effects are not obvious enough on preventing the impact brought by sadden crisis when the effect of risk superposition causes a sharp increase of risk.Based on the qualitative and quantitative analysis above,the article put forward some suggestions about improving the firewall system of China from the operational mechanism and the system construction respectively.Building a set of systematic and prospective system in order to keep the financial market a high efficiency,stable and sustained development under the trend of the accelerating exploration of mixed operation.