| China's entry to WTO is both an opportunity and a challenge for financial industry. In the face of fierce international competition, and in order to maintain competitive advantage, China's financial industry will have to conduct the innovation of financial management and organizations to open up new business fields, seek new profit growth, and enhance the ability to resist risks. The innovations of financial management and organizations will inevitably bring about the intersection, infiltration, and integration of traditional financial business, and the cross-market operating activities of financial institutions will inevitably lead to the trend to mixed business. The banks have gradually developed to the organizations dominated by the mixed financial blocs (MFB), which have become the leading financial organizations in various national financial institutions. At present, in order to survive in the market competition, domestic and foreign MFB develop rapidly. In our country, China Guangda Holding companies such as Guangda Bank, Guangda Securities Company, Guangda-Yongming (Everbright-Sun) insurance company, and Guangda International Trust and Investment Corporation have their business covering banking, insurance, securities, trust and other financial industries, and developed as a first mixed financial group. With its fast development, MFB has attracted the interest and attention in the fields of financial academy and profession.So we can rarely find profound literature research paper on capital administration and risk control of mixed financial blocs (MFB). More work is focusing on giving out policy recommendations by blending practices of MFBs locally and internationally. The research on capital administration and risk control of MFBs is still on the theoretical reasoning level. Pragmatic study hasn't get to any clear conclusions part of which are even conflicted with each other. A unanimous conclusion can't be got partly due to different methods taken by different researchers. And more importantly, the probe on MFBs is just at infant stage without fully revealing the problems on capital administration and risk control.On the basis of financial economics, financial regulatory and capital supervisory theories, this thesis summarizes and evaluates the mode characteristics, advantages, developing trend and supervising mechanism of foreign banks either mixed or divided operating. Using financial economics theories to build up MFBs'efficiency -maximizing model, uni-term and mutil-terms capital supervision models, this thesis also quantitatively describes the relationship between capital supervision and stimulation mechanism of banks which are directed by MFBs. Theoretical models also have been setup to analyses the interactive mechanism between market forces and the MFBs dominated banking capital supervision by combining the tri-supporting stands of the . In this thesis, game theory has been used when studying the banking capital supervision modes under MFBs. In order to study and practically validate the transformation of banking capital and corresponding risks, this thesis uses advanced-econometrics tools to setup blending regression model, individual fixed-effective regression model which is one of the fixed-effective regression models.Following conclusions can be made.This thesis studies the instance of banking capital supervision under MFBs both theoretically and practically. Main fruits are:Created theoretical model of banking capital supervision under MFBs, uni-term and mutil-terms supervision models required by capital adequacy ratio.Research found out that MFBs itself can get more chance to grant loans by fine-tuning the combination of capital and deposits. At the same time, MFBs also have to keep balance between loan revenue and potential bankruptcy.Created dynamic financial model. By studying the model, this thesis theoretically found out the relationship among the tri-supporting stands of < Basel Protocol>, and market restriction (the third one) can bring down the minimal critical value required buy capital supervision.Created game theory. By studying this model, the author found establishing MFB mode can help the creation of a unified financial supervision system, prevention short-sighted speculation operations of financial holding companies and MFBs in partial markets. The MFBs mode also bring a loose policy environment to the financial innovation for institutes, properly guild the institutes to mixing operation, and stimulate the efficiency increase of the financial system.By using econometrics tools and panel data, pragmatic research has been given to the current banking capital supervision and corresponding risks which are dominated by MFBs of our country. No direct relationship has been found between MFBs development and augmented risks in China's financial markets. Further more, individual differences exit in different MFBs because of the capital requirement and varied risks. This thesis consists 9 chapters. Chapter 1: overviews research background, purposes, methods, contents, status quo of similar research in and outside China, creativities of this thesis. Chapter 2: reviews economics theories of financial supervision and its evolution, including financial supervision theory, economic agency theory, theory of information asymmetry, bank risk theory, game theory and dynamic game theory with incomplete information. Chapter 3: summarizes features, advantages, trends and supervision system of foreign banks transforming from divided to mixed operation. Chapter 4: analyzes the maximum utilization of MFBs, supervision capital optimization, standardized analysis of uni-term and multi-terms regulatory capital. Chapter 5: quantitatively describes the relationship between capital supervision and motivation mechanism of banks which are directed by MFBs Chapter 6: researches the interactive mechanism between banking capital supervision and market constraint mechanism under MFBs. Chapter 7: researches bank capital supervision modes under MFBs with game theory. Chapter 8: uses advanced-econometrics tools to setup blending regression model, individual fixed-effective regression model which is one of the fixed-effective regression models to study and practically validate the transformation of banking capital and corresponding risks. Chapter 9: draws conclusions and put forward prospects for later research.The theoretical innovation of this thesis can be concluded as follows:Capital adequacy ratio is brought into the banking capital supervision under MFBs model. Uni-term and multi-terms supervision model required by the capital adequacy ratio has been set up. Holmstrom and Tirole models have been expanded.Theoretically study the relationship among the tri-supporting stands of < Basel Protocol> which are capital adequacy ratio, supervision restriction and market restriction. By studying the dynamic financial model., this thesis found out market restriction can decrease the minimal critical value required buy capital supervision.Dynamic game theory. model has been built. By studying the connection between the supervision body and players under the MFBs such as banks, the author figures our establishing MFB mode can help creating a unified financial supervision system, preventing short-sighted speculation operations of financial holding companies and MFBs in partial markets. On the other hand, the MFBs mode can provide institutes a loose policy environment to innovate and promote the entire efficiency of the financial system.By using econometrics and panel data, pragmatic research has been given to the banking capital supervision and corresponding risks which are dominated by MFBs currently in China The results are individual differences exit in different MFBs because of the capital requirement and varied risks, and no direct relationship between MFBs development and augmented risks in China's financial markets.
|
PDF Full Text Request