The Opening Of The Banking System And The Financial Security Of China

Along with the progress of economic globalization, financial globalization is becoming more and more spreading and deepening. Following the large-scale access to some developed countries in Northern American, foreign capital has controlled an increasing share of the banking sector in many Asian, Central and Eastern European, and Latin American countries since the middle of 1990s. The opening up of the banking sector has had a positive impact on some countries' financial security, but also has had a negative impact on others. In order to investigate further into the impact of the opening up of the banking industry on the financial system in China, this paper starts from the mechanism of the opening up of banking industry influencing on the financial security , along with the national differences in the same process, and by analyzing the present situation of our banking industry and financial security, offers some practical suggestions.This paper is consisted of four chapters. The first chapter elaborates on the concept of financial security, the basic categories of financial security in the financial system and the relative theories, which lays a sound theoretical groundwork for whole paper. The second chapter analyzes the functioning factors of financial security from two basic perspectives. The next chapter explains the mechanism of financial security in developed countries and its characteristics. Then it goes deeper into the differences between China and these countries in this area. Finally, it gives the general lessons to our country by analyzing the present situation of the US financialcrisis and its causes. The last chapter reviews the history of the opening up of banking industry and the present situation, then it explores how the opening up of banking sector positively affect the financial security. By stressing the importance of financial security in our country's present situation, and pointing out the fresh challenges posed by the opening up of the banking sector, the paper finally offers three suggestions respectively.