Research On Capital Centralization Management Model Group Financial Companies

Enterprise group financial company refers to a type of non-banking institutionwhich can provide finance management service for the enterprise group and its innerunits, it aims at strengthening group’s capital centralized management and enhancethe capital’s utilization effiency.It can be explained in broad and narrow sense,itmeans non-bank professional financing institution in a broad sense;and it means anaffiliated institution oriented at servicing for the inner unit members in anothersense.The financial company in this paper refers to the narrow sense.Foreign financial companies have been developed for more than200years,which have been played an important role in the social and economic life. Largemultinational companies usually have affiliated financial institutions with financialcompanies as its main body to provide specific financial services, more thantwo-thirds of global top500enterprises already have their own financial company.As the dual products of economic system reform and financial systemreform,financial companies has become indispensible supplement in China’sfinancial markets,it also play an major role for the steady and healthy developmentof the large enterprise groups. But financial company’s theory about operation andmanagement,development mode, industry regulation and so on is still in the processof continuously explore and research.The modern development trend of economic globalization and integrationpromote diversifying enterprise group, and the diversity and professionalrequirements for financial services is increasing day by day; On the other hand, thecourse of international integration for China financial market speeds up increasingly,and the full liberalization of financial markets makes the financial companies arefacing fierce competition from international and domestic financial institutions,financial company is facing unprecedented challenges. In this development trend,some tumor disease of the financial company is also increasingly clear such as singlefunds source, narrow business scope, core competitiveness lack,all these diseasemade the financial company’s development in a dilemma. As a result, it becomes aninner driving force for the financial company through innovating the management mode and business mode to achieve sustainable development.Starting from exploring the function orientation, centralized fund managementmode, risk management model of enterprise group financial companys in our country,this paper try to explore suitable management mode for financial company’s furtherdevelopment through analysing the uniqueness of financial company in management.Finally,by taking the JCC Financial Company as an example, this paper expounds thesuccessful application of the financial company’s management mode in enterprisegroup.