A Study On The Cost-Saving Function Of Financial System

If capital is considered as the "blood" of one country's economic system, the financial system can be regarded as a complex system that takes charge of the "blood circulation". Currently, there are mainly two types of financial systems, which are Bank-Oriented System and Market-Oriented System, They collocate resource and promote economy-growth through each relatively-advantage function, and Interweavement and Inter-assimilating Phenomena take place in the developing course of the above two types of financial systems. Therefore, this paper will follow with "the Financial System Function View", which was put forward by Merton who is American famous economist, and make some analyses and comparisons on different financial systems from "Cost-Saving Function View", which comprises such views as Information Cost, Agency Cost, Financing Cost, Financial Management Cost, Contract Cost, Risk Sharing and Diversion Cost, Finance Innovation, System Cost, Legal Cost, Ethic Cost, and so on. And it tries to make some analyses on the developing motivation and trend of financial systems and the trend of Chinese financial system reformation from the view of "Cost-Saving Function".