Study On The Development Model Of Financial Holding Company

With the further opening-up of China's economic and financial sectors and the rise in Chinese people's income, the financial industry in China is increasingly pressured to strengthen its competitiveness and promote innovation. Comprehensive operation has become an irresistible trend for it. At present, the boundary between financial institutions, financial products and services have become more and more blurred, making it even harder to identify and distinguish between them. What clients care is whether the product can solve their problem, rather than who provides it. Therefore, to strictly distinguish between financial institutions and their products have become too conservative and out of season. A market trend is in the making: to provide clients with a package of solutions and meet their overall need through cross sales and cross marketing. To come in line with the trend, financial institutions should carry out comprehensive operation in the form of financial holding companies.Based on economics theories, the thesis expounds the historical background of foreign financial holding companies'development, and summarizes their development paths and current status. After introducing China's economic climate, regulation models and operation status, it points out that establishing financial holding companies is an important experiment in the country's financial system reform. It's not only a natural choice and feasible model for China's financial sector to transform from separate operation to comprehensive operation, but also the best organizational model for domestic institutions to sharpen their core competitive edge when competing with foreign financial groups after China's WTO entry. Then the thesis comes up with specific suggestions on promoting the core competitiveness of financial holding companies.The first part of this essay is mainly about the history of foreign financial holding companies. After summarizing the historical factors of their development, the thesis takes the United States, Britain, Japan and Taiwan region as examples to detail the history and current status of financial holding companies in different countries and regions. It analyzes their operational features and relevant regulation, and introduces three typical models of financial regulation ---- sector regulation, integrated regulation and mega-regulation.The second part is dedicated to China. A large amount of comparative data analyses are used to prove the necessity for China's financial industry to change its operation model from separate operation to comprehensive operation. Analyzing the evolution of China's financial operational system, the current status, financial system, market building and the like, and drawing upon foreign experiences, it points out that comprehensive operation is the natural choice for the financial industry in China.The third part discusses in detail the ways to carry out comprehensive operation in China, especially how to strengthen the core competitiveness of financial holding companies. Based on the feasibility analysis and the summary of foreign practices and domestic situation, the thesis provides some effective measures to promote the core competitive edge of financial holding companies, namely, to build a matrix-styled structure that helps to strengthen management vertically and promote synergy transversely; to build an integrated platform of comprehensive financial services, featuring comprehensive services, information sharing, centralized management model, unified user interface and professional operation system; to enhance synergy and innovation of corporate finance, consumer finance and trusted asset management; to establish and improve risk control mechanism, including setting up the"firewall"system, strengthening capital management, operating by law, standardizing the sharing of customer information, tightening internal management and minimizing the risk of people.