Research On The Risks And Supervision Of The Combined Financial Services Enterprise Group

Financial conglomeration becomes the dominant trend of financial industry development of the world.Financial conglomerates have to face a series of questions such as risk analysis,financial risks measurement,risks on consolidated basis,allocation of economic capital within the group.The paper uses the quantitative method and qualitative method which combined the experience of the western countries and China's real conditions to carry on research to the aforementioned problems of financial conglomeration.In chapterâ… ,the paper points out the academic innovations and deficiency of the paper.In chapterâ…¡,the author makes analysis to the general and special risks of financial conglomerates.Because of complex organizing structures and internal relationship,some new particular risks arise such as contagion risk) risk of interests,risk of double gearing(re-calculation of capital fund),the lack of trasparency.Furthmore the paper proposes the risk management frame of financial conglomerates using Copula method.Against these risks,chapterâ…¢puts forward mechanism to take precautions against the risk including internal risk control and external supervision.Chapterâ…£discusses the characteristics,fund sources and operation mode of internal capital markets of financial conglomerates;Chapterâ…¤discusses the risk of conflict of interests.In chapterâ…¥,the four-dimensional-conducting-model of risks has been brought forward.Moreover,a principle of the conducting of risks has been discovered,using the model and method from easy to hard,after analyzed the series conduction,parallel conduction,the combination of series and parallel of risks,the paper builds models to figure out the characteristics of risk conduction inside financial conglomerates.Chapterâ…¦discusses financial regulatory competition and conflict,as intensified by financial conglomerates,calls for proper coordination.There exists four major models,the US's umbrella supervision model is now under criticism after the subprime lending crisis,integrated regulation(inclusing twin peaks) is of more referential significance. Chapterâ…§discusses the game analysis of participating agents in international coordination and cooperation of financial supervision and regulaiton.Later the paper discuss the Baselâ…¡,which is the outcome of global economic integration and the internationalization of ecomomic risk.With the representative of the core principle of Baselâ…¡,the agreements became an important international pratice and we should benefit from these rules and regulations to perfect legislation of supervising financial conglomerates.Nowadays,there has been the embryos of the financial conglomerates in China in which there are no relative laws about financial conglomerates,so the introdution of the legislation and supervision on financial conglomerates in develped districts and countries are very indispensable.Considering the resemblance in finance field between Taiwan and mainland,the development of the regulaiton on Taiwan's financial holding company is chosen to be the reference in the research.The paper utilizes econometric methodology,and obtain seasonal data from Januany 2003 to December 2008,for 14 listed FHC to search the total risks respond the diversified financial operations in FHC.