Rational Perspective Of The Legal System Of Banking From Investment Securities

In the history, commercial banking and investment banking evolved from combinating to separating, then back to combinating. The historical evolution is not a simple circle but a spiral developmnt. In substance, the conbination of commercial and investment banking is re - building of financial function structure, which results from the deepening of the division of market. The operating form to keep commercial banks out of the investement banking business meets with more and more queries. The grounds for separating such as "right", "low risk" and "low cost" can't stand firmly on its feet any longer. On the contrary, the superiorities of combinating are in many countries' good graces. China, too, is affected by the trend of combinating of commercial and investment banking because it is an important part of the whole world in economy. However, many problems with regard to the law system of combinating are in the urgent need of being probed into. The author makes a study on the ground for separating, using the methods of comparative research, then thinks about the mode of banking's operating in the future in China.The thesis is composed of four parts.Part I: The author analyses the differences in form and the sameness in substance of the commereial banks and investment banks, so as to explain that distinguishing the two kinds of banks is an artificial isolation.Part II: The author analyses the historical evolution of banking development, using the model of America and Japan, so as to conclude that the artificial isolation by law is the barrier of the development of market, and that the combination mode is in line with the need of market.Part III: The author analyses the modes of separating and combi-nating from fairness , right, result, safety, cost and so on, using the Glass - Steagall Act and Financial Services Modernization Act of 1999 including their favourite operating modes. In this part, the author refute the grounds for separating, so as to advocate a policy of combinating.Part IV: The author presents the abuses of separating mode, analyses the necessity and possibility of combinating in China from the angle of long- term development. In this part, the author also thinks about the route of banking operating in the future.