Selection Of China's Banking System

The system of the world banking generally goes through the development courses, of merger, separate and merger. We begin to see the light from studying the practical banking model in developed countries, which is more mature, that it is the inevitable trend of the return from separate-business-operating to mix-business-operating for the development of the world banking. This is also the final choice of the banking for existing and development. This paper analyses the practical necessity and feasibility of putting' mix-business-operating into practice, considering our current financial situation and experiencing the mature banking systems of the developed counties. It points out that we should choice the banking operating model of Financial Holding Corporation, which can be suit for our financial environment and realize mix-business operation by its son-corporation, to rebuild our state-owned commercial banks, while the financial supervision could not be hindered. Although mix-business-operating can't be put into practice right now for some conditions ?are not satiable, the current conditions are suit for separate-business-operating temporarily, it will be put into practice in the end. In this way, our banks can only compete in the same financial arena facing up the rules of WTO with the financial magnate from western countries.