Development and Regulation of Financial Groups

Author: Gui Hefa
Publisher:
Publish Date: 2004-10-01
Features: The main conclusions of this book are three: , the innovative spiral theory of financial system evolution is re-explained, proposing that the accurate expression of the innovative spiral should be the continuous expansion of the boundaries of capital markets, intense competition among various financial institutions, and the interweaving of these two forces constantly driving the financial system towards greater efficiency, with capital markets becoming the platform for the operation of all financial institutions. Second, the main characteristics of financial groups are comprehensive operations and scale expansion. The driving force behind the comprehensive operations of financial groups is the increase in household income and changes in the structure of household financial assets. Advances in information technology provide the technical foundation for the large-scale operations of financial groups, while increasingly fierce competition exerts external pressure on the scale expansion of financial groups. On the global financial competition stage, financial groups must engage in large-scale comprehensive operations. Third, the domestic and international competitive pressures on Chinese residents will continuously promote the marketization and internationalization of China's financial industry. The interaction of these two forces constitutes the inherent requirements and external pressures for Chinese financial institutions to adopt comprehensive and large-scale operations. The leading enterprises in China's financial industry must face global financial competition and must pursue large-scale, group, and comprehensive operations. However, the development of financial groups does not advocate that all financial institutions should adopt comprehensive operations. In the vast financial service market of China, any niche market exists a space for "financial specialty shops," as long as they possess core competitiveness.