The Comparasion And Evolusion Of Financial System And China's Choice

The finance is the core of the modern economy. All countrys and regions focus on constructing financial system since a steady and efficient financial system is the base of a national economy's healthy development.As the basis of the analytical financial system, financial intermediaries and financial market were viewed as an aggregation concluding both depositors and investors by Arrow-Debreu general equilibrium model. Financial systems merely serve as an intermedium passively between the final borrowers and lenders proceeding to trade. The localization on analysis frame of orthodox financial theories cannot but neglects characters of both financial market and financial intermediaries, and it then impossibly embody the effect of institution circumstance. At the same time, it also make person cannot have cognizance of that financial development itself is to increase, and both financial development and economic growth have the common reason. For this, the article tries to break through the before research pattern and investigates endogenous evolution of financial system from microcosmic mechanism.The article takes two kinds of financial systems'function comparison as point of departure and has discussed various approaches and differences between two kinds of financial systems when they handle with risk sharing and management, information processing and corporate governance.The fact drives us to a conclusion:diferent financial system has each superiority in aspects of liquidity supply, post supervision, risk sharing, information processing, financing for advanced technology and accelerate corporate governance.Secondly, this paper regards the formulation of financial system as a course of both division of labor and specialization. In this course, financial innovation is essential. Because of transaction cost, asymmetric information and uncertainty existing in the activities of financial transaction, financial systems in real world are created endogenously, which can be viewed as substitutes of immediate financial contract market in ideal one. Only one nation possesses institution terms that can result in the creation of efficient economic organization, could hold an expansion of the financial system and achieve a great economic growth. Because the type and size of the market scale, trade efficiency and trade expenses of diferent countries are diferent, it not only changes the structure and form offinancial or ganization, but also brings on the diferent modes of evolution in division of labor of financial systems, which is the reason of forming diferent financial system types and financial institution arrangements. However, once one country has possessed fundamental institution terms of financial development and economic growth, it will get higher finance-deepen level and economic development level. Financial development has a possibility of multiple equilibrium. For the developing countries and transition ones, which lack of institution terms needed in financial development, imitating the financial system of the developed countries can not bring on anticipated financial development and economic growth. Just as formulation of the financial system is the result of entrepreneurs' seeking, financial institution arrangements are also looked for by the supervisor, while this kind of endogenous financial institution arrangement is most efficient.Thirdly, the financial system of our country has experienced the process from the bank-oriended system to the descend position of bank on quantity since reform opening, but the likeness of this kind of quantity does not mean our financial system is following the inside regulation of the evolution, on the contrary, the variety of allotment structure on national income, the establishment of transition path on reform, government's powerful control to the economy and the low currency level etc made our financial system walk up another evolution path. Not only in the formation of the bank system with extend but also the boom of stock market, government has a predominant function.In financial system of predominanced government, the initial function of the financial market and the bank system lie in providing finance support for the state economy, resulting in the severe functional shortcoming and structural inconsistency of our financial system, so the low efficiency of financial system.We have to adjust the finance structure to change the evolution path of our financial system and make the function of the financial system work well.China's developping the capital market actively is obviously necessary at present, but the market is not an abstract concept, it involves the financial tools, trade system, financing institution and investor protecting etc. We can't in brief lie to stand opposite in the market and finance, the development of market doesn't reject the development of financial intermediate.It is the competition relation lying to see from the static state angle or the relation of spiral development seeing from the dynamic state angle on the contrary. Diferent finance systems progress gradually by sticking to gether but not superseding.There lationship between market and bank is to depend on for existence incompetition.The emphasis for one finance system's reform will not be simply improving bank intermediation or financial market, it is vital to synthesize the superiotities, enhance construction of basic financial infrastructure, promote the production and exchange of information and to perfect relative law system and financial supervision system to make the finance systems work more effectual.