Analysis Of The Financial Holding Company In China External Regulatory Approach

The financial holding company is a financial enterprise group formed in the form of holding company. With the tide of financial liberalization, the financial holding company is emerging constantly in the world. Developed countries such as U.S.A., Great Britain, Japan, etc. have all already gone on the road of mixed operation. According to WTO agreement, the financial industry of our country should be opened to the foreign capitals comprehensively this year, the foreign financial institution that can undertake the multiple operation has already made good preparations for occupying the Chinese financial market on a large scale. Under the situation, as the domestic financial institution, it is very difficult to defeat rivals among keen competition. Seeing that at present market economy and market mechanism are still not complete, it is not the right time to carry on mixed operation, so establishment of the financial holding company has a very strong realistic meaning in ensuring the financial security of our country. Moreover, with the development of market, there is demand for the financial institution to expand business.Therefore, under the system frame of separate operation, the financial holding company has great advantages. On the one hand, it has the advantages of financial large-scale production, range economy, cooperative effect, business pluralism, risk dispersing and financial innovation, on the other hand, it can form "the fire wall" among different financial transaction to effectively control the transmission of financial risks among different financial institutions.But as the financial holding company plays many kinds of roles on the financial market at the same time, it becomes aggregate point of financial risk. Because there have not been laws and regulations about financial holding company in our country yet, many risks of financial...