Research On Commercial Banks' Establishment Of Financial Holding Companies

Recent years have witnessed the rapid development of financial markets & financial innovation in the world,which have resulted in the phenomenon called "financial disintermediation". World-wide Commercial Banks including ours begin to set foot in securities, insurance, trust and other financial areas, apart from traditional business.Then,the "Economic and Social Development eleventh Five-Year Plan" clearly put forward the opinion to perfect the basic system of financial institutions, and steadily promoted comprehensive management pilot of financial service industry,which has undoubtedly brought an important opportunity for development of commercial banks in China.Adopting combining methods of historical analysis and comparative analysis,the paper has analyzed the successful experiences of three classical financial holding companies(FHC),such as the United States Citigroup, Deutsche Bank Group,as well as HSBC Group.And the paper has Summarised the lessons drawn from the United States sub-loan crisis.Based on the careful study of the experience & lessens of typical FHC,and the practice of Chinese financial industry, the author has deeply put forward ideas for the healthy development of FHC based on bank:First,it's wise for commercial banks to conduct focused strategies operational or geographical.Second,it's a must for FHC to strengthen management and control capability. Third, the auther advises perfecting internal control systems from six aspects. In the mean-while,it's urgent for our government to conduct relevant legislation.