China's financial institution system

First, the main process of the emergence and development of banks and the ways to establish a modern banking system

Banks are produced and developed in the process of gradual development of commodity production and market transactions, so they are the products of economic development.

After the appearance of metal currency, early gold and silver exchange, custody and exchange business appeared, and early money changers and banks and other institutions were formed. For example, in ancient Greece and Rome in Europe, there were a lot of records of gold and silver storage, exchange and lending. But until the end of the long Middle Ages, this kind of banking business still maintained its traditional form.

Modern capitalist mode of production and industrial revolution are the main driving forces for the transformation from traditional monetary management to modern financial industry. By the middle of16th century, the industry, commerce and trade of Mediterranean countries had developed greatly to adapt to economic development and savings. The earliest commercial banks appeared for the need of loans. These commercial banks not only handle deposits and loans, but also engage in transfer and settlement business. However, their loans are often usurious, and it is difficult for ordinary workshop owners and businessmen to obtain loans. Even if they do, they are unprofitable because of high interest rates. Obviously, this can't meet the needs of capitalist economic development, and capitalist banks must be established.

Driven by the development of capitalist industry and commerce, banks in a truly modern sense gradually developed from the end of 17 to the middle of the next century. The establishment of modern banking system and the replacement of traditional money operators and usurers are realized through two ways: first, under the new economic conditions, the old usury banks have gradually changed into modern banks by adjusting their lending principles, with the main characteristics of absorbing social funds on a large scale and issuing loans at lower interest rates; Second, joint-stock banks established according to capitalist principles; Yes, it has the nature of a modern commercial bank from the beginning, and is engaged in large-scale financing and loan activities. Because of its abundant capital, strong financing ability and low loan interest rate, joint-stock commercial banks have gradually become the dominant form in the modern credit field, and banks have become the center of the whole social credit. 1694, the first modern bank, the Bank of England, was established in England, which marked that the monopoly position of usury in the credit field was broken. Since then, modern banks have developed widely in Europe.

Second, the bank is a special kind of enterprise, how to understand it?

Banks are financial institutions and enterprises. The reason why it is an enterprise is that it has * * * similarities with general industrial and commercial enterprises. The same characteristics of enterprises are: engaging in direct business activities, having certain funds, independent accounting, and making profits through business activities. Banks have all the characteristics of enterprise departments and are the necessary links to realize capital circulation.

Compared with other enterprises, banks have the particularity that ordinary enterprises do not have, mainly in the following three aspects:

1. Special interests of banks. The special interests of banks can be roughly summarized into two aspects: ① the interests from the characteristics of the industry, that is, they can conduct business activities without investing a lot of their own capital and obtain considerable benefits. (2) Benefit from state intervention and close relationship with state power.

2. Special risks of banks. As a special enterprise engaged in monetary credit, the relationship between banks and customers is not a general relationship of commodity buying and selling, but a credit relationship centered on lending. In commercial activities, this relationship is manifested in lending based on credit and conditional on repayment of principal and interest, that is, banks are in debt to the public in the form of deposits and financing enterprises in the form of loans. This particularity of the bank's business activities creates special risks in the fierce competition: ① Credit risk, that is, the possibility that the borrower can't or won't repay the loan on time, which makes the bank suffer losses. (2) Risks caused by the imbalance of assets and liabilities. ③ Risks from public trust. ④ The risk of competition.

3. The special role of banks. The special role of banks is manifested in two aspects: first, it plays a leading role in the funds for economic development. The object of bank management is not a general commodity, but a special commodity-monetary funds. The bank's business activities have an important impact on the flow of monetary funds between economic sectors, and then affect the development of various sectors of the national economy. Which department can get a lot of financial support from banks, which department has development advantages, on the contrary, it will be at a disadvantage in the competition. The second is to give play to the important role of state intervention in the economy. The state influences the money supply and interest rate through banks. Economic indicators such as loan amount, and then implement economic intervention.

It can be seen that modern banks, as "special enterprises", occupy a special position in economic life and have a special influence and adjustment on social and economic life.

Third, the basic composition of the financial system of modern market economy countries

In line with the market economy system, modern market economy countries generally have a large-scale financial institution system with fine division of labor, including bank financial institutions and non-bank financial institutions. Among them, banking financial institutions are dominant.

Banking financial institutions can be divided into commercial banks, central banks and specialized banks according to their respective functions in the economy. The banking system they form is usually called the modern banking system. Commercial banks are banks that handle all kinds of deposits, loans and remittances, and are the only banks that can accept demand deposits. The central bank is developed on the basis of commercial banks and is a national financial management institution. It is called "issuing bank", "national bank" and "bank of banks". Specialized banks are banks that provide specialized financial services focusing on specific businesses, including investment banks, real estate mortgage banks, development banks, savings banks and export-import banks. In the modern banking system, the central bank is in the core position, commercial banks are in the dominant position, and other specialized banks still have room for existence and development.

Non-bank financial institutions are an important part of the whole financial system, and their development status is one of the important signs to measure the maturity of a country's financial system. Non-bank financial institutions take deposits as the main source of funds, but absorb funds in a special way, use funds in a special way and make profits from them. Such financial institutions include: insurance companies, credit cooperatives, consumer credit institutions, securities companies, finance companies and trust companies. Leasing company, etc.

The division of labor and composition of the financial system are constantly changing. For a long time, in the financial institution system of most countries, commercial banks and non-bank financial institutions have a clear division of business. For example, the United States, Britain and other countries adopted a separate business model after the 1930s, which is characterized by the separation of long-term and short-term credit business, general banking business and trust business, and securities business. Since the 1980s, the separate business model of financial institutions has been gradually broken, the businesses of various financial institutions have been continuously crossed, the original differences of various financial institutions have been continuously narrowed, and the trend of comprehensive management and diversified development has become increasingly obvious.

4. Similarities and differences between banking financial institutions and non-banking financial institutions in the financial institution system and their relationship.

The financial institution system of a country consists of banking financial institutions and non-banking financial institutions, among which banking financial institutions are dominant.

The similarity between banking financial institutions and non-banking financial institutions lies in that they both absorb funds in a certain way and use them in a certain way, and they all have the basic characteristics of financial enterprises, which are as follows: both take profit as their business purpose; Mainly engaged in various business activities related to the monetary fund movement; They all play the role of financing in economic operation.

There are obvious differences between bank financial institutions and non-bank financial institutions, mainly in the following aspects: ① Different ways to absorb funds. Bank financial institutions mainly absorb funds through deposits, while non-bank financial institutions absorb funds through other means; ③ Different modes of operation. The main business models of bank financial institutions are deposits and loans, while those of non-bank financial institutions are diversified. For example, insurance companies are mainly engaged in insurance business, trust companies are mainly engaged in trust business, leasing companies are mainly engaged in leasing business, and securities companies are mainly engaged in investment business. ③ Different positions in the business. In its business, it is more complicated for banks to focus on being debtors on the one hand and creditors on the other, rather than banking financial institutions. For example, insurance companies are mainly insurers, trust companies are mainly trustees, and securities companies are mostly agents and brokers. ④ The specific functions played in the financial field are different. Banking financial institutions mainly play the role of credit intermediary, while non-banking financial institutions play different functions according to their different businesses. For example, insurance companies mainly play the role of social security, and trust companies mainly play the role of property affairs management.

Banking financial institutions and non-banking financial institutions are both important parts of a country's financial institution system, providing comprehensive and perfect financial services for the society. Banking financial institutions occupy a dominant position in the whole financial institution system, while the existence of non-banking financial institutions enriches financial business and fully meets the diversified needs of modern economy. Therefore, the development degree of non-bank financial institutions is an important symbol of the maturity of a country's financial institution system. .

V. Development trend of financial institutions in western countries since 1970s.

Since 1970s, financial institutions in western countries have developed rapidly, showing the following development trends:

First of all, banks are constantly innovating in their business and developing towards integration. Innovations in financial institutions, financial services, financial instruments and other fields have better met the needs of customers; At the same time, the combination of commercial banks and investment banks has promoted the development of banks; Universal commercial bank. Secondly, the establishment of multinational banks makes the development of banks more international. Banks all over the world have set up branches abroad, set up multinational banks, engaged in international banking business and developed overseas financial business. Third, according to the requirements of the Basel Accord, the capital structure and operating structure should be reorganized. This code of conduct for international financial market participants proposed by the Bank for International Settlements has been observed by most banks in western developed countries. Fourthly, M&A has become an effective means for the adjustment of modern commercial banks. Especially since the 1990s, the western banking industry has been constantly restructuring in order to adapt to the changes and requirements of the situation. Fifth, banking financial institutions and non-banking financial institutions are constantly merging to form a larger compound financial institution. The traditional separate business model has been gradually broken, the businesses of various financial institutions are constantly overlapping, and the original differences of various financial institutions are narrowing day by day, forming a trend of diversified and integrated operation.

To correctly understand and grasp the development trend of financial institutions in western countries, we should also analyze the historical background and internal reasons of this trend.

First of all, since the 1970s, economic liberalism has gained the upper hand in the war with state interventionism in the economic field. In order to reduce the government's intervention in the economy and give full play to the role of the market in the economy, the governments represented by the United States and Britain began to relax financial control. This makes the competition among financial institutions increasingly fierce. Fierce competition has prompted the emergence of many new things: banks continue to carry out financial innovation and provide all-round services to attract customers; The banking industry brings complementary advantages through mergers, expands business areas and strives for a wide range of customers; The transition from separate operation to diversified comprehensive operation. Second, the emergence of new technologies, especially the wide application of electronic communication, information processing and computers in the financial industry, has provided support for financial innovation and cross-regional operation of multinational banks. Thirdly, with the increasingly close contact of financial markets in various countries, the integration of banking rules in various countries, the supervision of banking operations and the prevention of risks in international financial markets are gradually put on the agenda. Therefore, the Basel Committee and other international financial organizations came into being to carry out international coordination and management.

It can be seen that the above development trend has its objective inevitability. It promotes the integration and development of the world financial industry, promotes the international capital flow, and helps banks to improve their operating efficiency, but at the same time it also puts forward new topics for the prevention of financial risks and the effective supervision of international banking. As a participant in the international financial market, China should learn from the development trend of financial institutions in western countries, deepen the reform of financial institutions, improve the competitiveness of the banking industry, and promote the process of financial internationalization in China.

6. What adjustments and reforms have China's financial system undergone? From its evolution, how to understand the influence of social and economic conditions on the formation of financial institutions system?

At present, China's financial system takes the central bank as the core, state-owned commercial banks as the main body, and various financial institutions coexist. The formation of this system has gone through the following process:

1. the financial system under the "unified" model before the reform and opening up. This is a highly centralized single national banking system with administrative means as the mainstay. Its characteristics are as follows: ① In terms of bank setup, China People's Bank is the only bank in China that handles all banking business, with branches all over the country, monopolizing all bank credit. The People's Bank of China integrates currency issuance and credit business, which not only performs the functions of the central bank, but also runs the credit business of ordinary banks.

2. 1979- 1982 financial institution system. The Agricultural Bank of China has broken the long-standing pattern that financial institutions are subordinate to the People's Bank of China, and restored and established an independent professional bank. The People's Construction Bank of China, the Bank of China and the People's Bank of China form a diversified banking system.

3. 1983 ~ 1993 financial institution system. Since 1983, financial institutions have carried out the following reforms: the People's Bank of China has been decided to exercise the functions of the central bank exclusively; China Industrial and Commercial Bank was established to undertake the credit and urban savings business originally undertaken by the People's Bank of China; Increase comprehensive banks such as Bank of Communications and regional banks such as Guangdong Development Bank; Set up some non-bank financial institutions, such as China People's Insurance Company.

International financial institutions have played an active role in strengthening international cooperation and developing the world economy, which are as follows: ① providing short-term funds to alleviate the balance of payments deficit and to some extent alleviate the international payment crisis. (3) Providing long-term construction funds to promote the economic development of developing countries. ③ Adjust international liquidity to meet the needs of world economic development. ④ Stabilize the exchange rate and promote the growth of world trade.

Of course, the current international financial institutions also have some shortcomings, such as stricter loan conditions and rising loan interest rates, which have aggravated the payment difficulties of developing countries. Some international financial institutions attach conditions to loans and intervene in the economic policies and development plans of developing countries.

With the continuous reform and improvement of international financial institutions, they will play a more important role in the international economy and international finance.