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Banking mixed operation to isolate risk

   the commercial bank law in force provides that "commercial banks in the People's Republic of China territory shall not engage in trust investment and stock business, not to non-private real estate investments or investing in non-banking financial institutions and enterprises, except as otherwise provided. "Which limit bank in the territory to obtain trust and brokerage licence under the trend of mixed operation of the financial industry, but still banks plan to gain trust and brokerage licence outgoing.

    a few months ago, has reported that Societe Generale to acquire huafu securities, Bank wants to buy British securities in China. The former is hard to distinguish between the true and the false, the latter has been confirmed, but the details are different. Bank of communications will not directly controlled or equity participation, outside but rather by its wholly-owned subsidiary of Bank of international assignees Huaying 33.3% equity securities. By this way, Bank curve has a brokerage licence in the territory, and indirect holdings of Bank of China Bank of China International Securities before the pattern is similar. The way they select and instructions directly to break out is very difficult.

    in contrast, the banks get a trust license progress is greater. Bank of communications, China Construction Bank, the Industrial Bank, in 2007, 2009, 2011 direct holdings trust, they have passed the approval of the State Council. At present, the Pudong Development Bank is buying Shanghai trust, will be the fourth holding trust licensing commercial banks. However, only four years, Bank trust licence is also not easy.

    mixed Bank operation was so bumpy road, is due to implementation of the principles of the separation operation and supervision. Adopted in 1995, the commercial bank law, embodies this principle. Prior to this, some banks are established security sector. For example, Societe Generale is Societe Generale, the predecessor of the securities business of banks in securities, which in a separate operation in 1999, at the request of decoupling.

    while the financial institutions mixed operation will very strongly, not only banks seek trust licence and brokerage licence, trust and brokerage is also seeking to acquire a banking licence and has a variety of licensing of financial financial holding group is also increasing. Why the mixed operation of financial institutions want it? In order to complement. Benefits of the Bank funds, low costs, a large number of restrictions on investment, not invest in businesses, the property and stock markets. Trust and broker advantage is less restricted ways to invest, but the high cost of funds.

    at the request of the mixed operation of financial institutions and regulators begin to consider reforms: from separated operation and supervision to mixed operation, comprehensive regulatory changes, by changing supervision model to business model. March 6, a spokesman said that considering the cross-licensing of different types of financial institutions, supporting financial institutions eligible to apply for securities and futures business licence. But he also stressed that to risk isolation, based on the premise that risk control.

    compared with mixed operation, separate operation to isolate risk, which is an important reason for our industry. How in the case of mixed operation risk isolation and need for research and exploration, test. Mixed operation, bank deposit should not be directly used for risky investments. In mixed operation mode of two main financial holding group and the universal banking model, is more conducive to risk isolation, and is currently the real mode, should be the main directions of research.

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