| Facing the challenges following financial industry open-up due to the WTO entry, on the practical conditions of shareholding system reform and going list, FHC (financial holding company) is the prime choice.FHC has the superiority of scale and scope economy effects. Financial institutions are more suitable to this mode due to their lower asset-specificity in capital, information and entrepreneur-ship. Meanwhile, the advantages in resources distribution efficiency and organization structure represent transaction cost economy.Chinese state-owned commercial banks adopting FHC would take on realistic significance. WTO entry promises that mixed operation would dominate the tendency. The establishment of FHC provides favorable chance for dealing with the bad loan problems. Based on better governance structure, holding company mode would accelerate reform and going list pace which is benefit to Chinese capital market.Germany mode is against our practical legal system at present. The character of Japan mode is investing in a new company to entering into another financial business sectors and satisfying the expansion need. This establishment route is a good example for Chinese state-owned commercial banks. The umbrella supervision of U.S. mode is transplantable. As the typical pure FHC based on commercial bank, Citi-group Inc. keeps away from legal limitation and divides the functions and risks of different businesses, winning both financial efficiency and financial security.In practice, the exploration and experiment of state-owned commercial banks might as well include the following aspects. Accelerating experiments is feasible measure keeping to step-by-step principle.The inherent risks of FHC comprise systemic ones and special ones. Under-capitalized risk and related transaction seem especially essential. The urgent tasks for CBRC, CSRC, CIRC and central bank include establishing supervision system and organization structure, and providing legal foundation. |
PDF Full Text Request