Research On The Supervision Of Financial Holding Company In China

The creation of financial holding company is an innovation in the financial area. These companies take the advantage of large-scale economies to reduce cost and realize the optimized resource disposal by classifying, combining, planning and allocating the internal resources. Furthermore, this financial organization system's innovation meets the need of the new economy, and shows up the healthy prospect. At the same time, the international practice demonstrates that financial holding company, as a kind of system arrangement of financial organization, realizes the development from the universal bank in the low phase to the multiplex financial group in the high phase.Under the pressure of self-development requirement and entering WTO, Chinese financial industry which carries out separate management mode can't evade the single capital and service mode of banking, securities and insurance institutions. Many financial groups and enterprise groups are all preparing building up financial holding companies. Nowadays there are many different forms of financial holding companies existed in our country, but the supervision on them lags far behind the financial practices. Therefore, the situation often happened in fact is the phenomenon of "supervision vacuum" and "supervision overlapping". The legal status of the financial holding company has not been approved by the law or department regulations. To promote the healthy development of financial holding company, it is urgent for us to learn from the oversea experiences, and to develop the suitable supervision system and supervision method of our country.The thesis uses the methods of real case analysis and comparison analysis, combines the theory and the practice, unifies the logic and the history, discusses the types, the development, and the risks, as well as the supervision gaps during the development of the financial holding company, and even puts forward some corresponding advices. The thesis text embodies 4 chapters: Chapter1 is introduction; Chapter 2 is the outline of the financial holding company, which introduces what is the financial holding company and the status quo of oversea and Chinese financial holding companies, then analysis of the common risks on the financial holding company, especially on the analysis of the characteristic developing risk of the domestic financial holding company, in order to find out the proper supervision according to the financial risks; Chapter 3 is about the supervision on the financial of holding company, which introduces the present supervision status both of some developed countries including USA, UK, and Japan, as well as our country. By the comparison of these, we get some experience and clues about the developing of our own financial holding company; Chapter 4 illustrates the prospect of completing the supervision system of domestic financial holding company, it can be done by two means to strengthen the supervision on the financial holding company's risk. First one is intensifying the external supervision system construction including perfecting law and regulation, distinguishing the main supervision institution, strengthening the construction of information sharing system, inspecting the affiliated deals' scale and level, and improving the capital adequacy ratio. The another one is perfecting the interior supervision system of financial holding company, including establishing the system of interior control, setting up the Chinese wall, and making the sound corporate governance, etc.