| Since1980s, the financial liberalization, internationalization and the scale has become the trend in financial industry because of the liberalization and marketization, so integrated financial services has become the main trend. The British Government introduced a financial "Big Bang"reform in1986and relaxed the financial regulations. Then banks have been allowed to offer integrated financial services including the securities business. The action of England was earlier than other contries in the world. Japan implemented an important reform in1997. The government amended the "Exclusive Prohibition Act". The act is a legal basis that the financial institutions can provide comprehensive financial services through the establishment of holding companies. The USA relaxed the financial regulations in order to improve the international competitiveness in1999after the law called "Financial Services Modernization Act" was Issued. While the law allowed financial holding companies engaged in banking, securities, insurance and other financial services. These important events that Britain and Japan and the USA and other countries engaged in reform about the financial industry marked the era of integrated financial services.With the development of global financial integration and China’s entering into WTO, domestic financial institutions have experienced enormous competitive pressure after our country reduced restrictions on foreign banks. In order to improve competitiveness, domestic financial institutions have to provide diversified financial products. Actually there are many models to integrate financial services, most countries and regions selected the model of financial holding company because they have to consider operating efficiency and financial security. At present, according to the old operation principles and supervision principles, financial institutions have to choose the model of financial holding company. Financial holding company can break through the old supervision principles, at the same time, the organization can improve operational efficiency of financial institutions and financial system through intensive management, economies of scope, economies of scale and synergies. However, financial holding companies may not only face the general risk, for example the market risk, credit risk and liquidity risk, but also face the risk of the capital security, risk of internal conflicts of interest, risk of intra-group transactions, risk of risk contagion and other special risk. Financial holding company which owns banks, securities, insurance companies and other affiliates has more destructive than a single financial institution because of its own characteristics. Therefore, it is very necessary to analyze and research the risk of financial holding companies for the purpose of avoiding regulatory gaps and improving the efficiency of the old supervision system. In short, the research on risk and external supervision of financial holding company has an important theoretical and practical significance. This article is divided into six parts.The first part is an introduction. We introduce the research background, including the theoretical background and practical background. Then we introduce the research on the financial mixed operation, financial holding companies and related issues which was studied by the domestic and foreign experts and scholars. Finally, the part provide the research methods.The second part is an overview of the financial holding company, the definition of financial holding companies are also different due to the difference of the actual situation of countries and different regions. the United States, Japan and Taiwan give the different definition to financial holding companies and the domestic scholars also define to financial holding companies. According to different classification criteria, the financial holding company can be divided into different types, such as the Pure Financial Holding Companies and Operating Financial Holding Company. Finally, this part describes the development of financial holding companies in China.The third part introduces the theory of the development of financial regulation, such as the emphasis on stable financial regulation theory, focusing on efficiency financial regulation theory and so on.The fourth part introduces the risk of financial holding companies in China. This part analyzes the general risk of financial holding companies and the general risk of financial holding companies in China. This chapter also describes the special risks of financial holding companies. Finally, China’s financial holding company special risk.is analyzed.The fifth part is to introduce international comparison and implications of the supervision system of financial holding company. This part describes the types supervision system of financial holding company, especially introduce the American umbrella model in supervising financial holding company, the English integrated model in supervising financial holding company and the "two peaks" supervision of Australia. Finally, the part offers the message about how to setting our country’s supervision model.Finally, the paper introduces the supervision model of Chinese financial holding company model how to be perfect. The part analyzes the recommendation in order to improve the old the supervision model. |
