The Financial Regulation Of The Transition From The Segregation To The Integration

From the end of 70's to 90's in the twentieth century, the financial service's industries of the West Countries had finished theirs mechanism's change from the segregation to the integration. The basic reason of the transition was that the later had some comparative advantages when the surroundings had changed. In the process of the transition, there was a dynamic game between the financial enterprises and the authorities of financial regulation. The past aim of financial regulation was to keep the stability of financial system, but it had been replaced by a new aim that emphasized two faces which were the stability of financial system and the benefit of the financial enterprises. The change of the regulation's aim resulted in the emendation of the financial laws. The new laws permit the financial enterprises to supply different financial services to their clients in the same time.In the process of the transition from the segregated financial system to the integrated one, the aims, the mechanism, the contents, the measures of the financial regulation had also been altered gradually The aims of the financial regulation had been slowly replaced from one aim to several aims. The mechanism of financial regulation had been gradually replaced from the setup of regulation to the function of regulation. The content of the financial regulation had been gradually replaced from rule-based regulation to prudential-based regulation. Some new methods had been used in the financial regulation, such as self-regulation and market's restriction. In the new century, the Chinese financial system had a trend towards the integrated financial system because the financial enterprises wanted to improve its capacity of competition. Meanwhile, the authorities of financial regulation should alter their regulation's aims, mechanism , content and methods.