Study On Commercial Bank's Security Business Mode And Efficiency In China

The combination between bank and securities business (simply named financial conglomerate between banks and securities companies as follow) is a kind of innovation of financial organization institution. The securities business modes are specific forms of it. The transition from separated financial institution to conglomerate institution is a financial organization institution transition process from unbalanced to balanced position. So the transition fixes in with the general institution transition rules. The mode of commercial bank's security business is a kind of specific organization institution of conglomerate between banks and securities companies. Under the frame of institution transition theory and in accordance with the general relationship between institution and efficiency, this dissertation analyzed the institution transition efficiency under different business modes and then designed the different transition route. Under the great international tendency of financial conglomerates, the drawback of separated institution in China turns more and more serious. Now the interim to WTO is coming over in China, the transition from separated institution to conglomerates is not only necessary but also quite urgent. The main content of this dissertation is just how to apply conglomerates institution under the imperfect circumstance in order to maximize its efficiency. The efficiency of financial conglomerates between banks and securities companies transition is a kind of institution transition efficiency. Concerning of the internal efficiency of banks, it means the comparison between profits and cost; when concerning of the external efficiency including other market members such as financial product consumers, securities companies and governor, it means Parito optimum of financial resources configuration. The demand of conglomerates institution comes from several market members. If only when the mode of conglomerates is efficient to the mass, they could raise transition demand. Meanwhile, the supply of conglomerates institution depends on the restriction of external circumstance factors. If only the mode matches circumstance factors, efficiency of market members could be maximized. Insufficiency of external circumstance of financial market in China restricts the valid supply of conglomerate institution between banks and securities companies. So some research insist on that China should keep on ineffective separated finance institution or apply conglomerate institution after the circumstance become perfect. The author gainsays the static and one-sided viewpoint, and raises the internal impetus mechanism generated from the conglomerate institution transition aiming for the main restricting circumstance factors at the moment. The conglomerate institution transition should be impelled gradually with some proper modes under the defective circumstance in order to achieve the balance between institution demands and supply gradually. The mode of bank's security business could be divided into three kinds according to organization structure in China: internal mode, holding company mode and strategy alliance mode. These modes are independent, have respective advantage, can transform each other according to the change of external circumstance. Under the internal mode, this dissertation set up a three-angles efficiency analysis model, aiming for bank's security investment, security loan and right security business, analyzes the impact to efficiency of the three main financial market members——banks, securities companies and governor from institution transition. It is tested that, in the interim, bank's security business attempt under internal mode gives a little help to raise social efficiency. But there are also some shortcomings. To overcome the shortcomings, six items of main policy propose are concluded. In the interim, there come some analogues of financial holding company in China. According to the international normal definition, the author divides these analogues into five types, analyzes the comparative advantage and its reasons of joint holding company and the financial holding company transformed from simple financial machineries, designs the transition route from abnormal financial company modes to normative ones, and correspondingly, raises the transition way of external supervision modes. Because of resemblance in form with general cooperation between banks and securities companies, the strategy alliance is not regarded as independent mode now. This dissertation analyzes their essential distinguish. Because of the special advantage in scale and scope economy, strategy alliance mode between banks and securities companies is raised as an independent mode of financial conglomerate. This dissertation analyzes its positive role to improve excess single income structure of banks, to detract transaction expense, and to satisfy all kinds of predilection of financial product consumers. Based on the resources matching among different financial machineries, themulti-levels transition route from alliance mode to holding company mode is designed respectively.