The financial industry refers to the special industry that deals in financial products, including banking, insurance, trust, securities and leasing industries.

1. Banking industry: In our country, it refers to the People’s Bank of China, regulatory agencies, self-regulatory organizations, and commercial banks, urban credit cooperatives, rural credit cooperatives, etc. established within the territory of the People’s Republic of China. Public deposit-taking financial institutions, non-bank financial institutions and policy banks.

2. Insurance industry: The insurance industry refers to an industry that uses funds pooled through contracts to compensate the insured for their economic interests. Insurance means that the policy holder pays insurance premiums to the insurer in accordance with the contract, and the insurer assumes the liability for compensation for property losses caused by the occurrence of accidents that may occur as stipulated in the contract, or when the insured dies, becomes disabled, or becomes disabled. The act of assuming responsibility for paying insurance benefits when reaching the age and period specified in the contract.

3. Trust industry: Trust, together with banking, securities, and insurance, is known as the four pillars of the financial industry. Its original meaning is "to be entrusted by others and to manage finances on behalf of others." According to the definition of trust in Chapter 1, Section 1 of the Trust Law, trust “refers to the trustor entrusting his property rights to the trustee based on his trust in the trustee, and the trustee entrusts his property rights to the trustee in his own name according to the wishes of the trustor. The act of managing or disposing of securities for the benefit of the beneficiary or for a specific purpose. ”

4. Securities industry: The securities industry is a specialized industry that serves securities investment activities. Securities are the general name for various types of property ownership or creditor's rights certificates. They are certificates used to prove that the security holder has the right to obtain relevant rights and interests based on the content on the face of the ticket. Therefore, the essence of securities is a transaction contract or contract, which gives the contract holder the right to take corresponding actions on the subject matter stipulated in the contract and obtain corresponding benefits according to the provisions of the contract.

5. Leasing industry: It is an operating industry that provides credit services by combining financial credit and material credit. General leasing activities are when the lessor leases the material materials it owns to others for use under certain conditions, and the lessee pays rent in accordance with regulations during use.

Extended information

The financial industry has the characteristics of index, monopoly, high risk, benefit dependence and high debt operating characteristics. ?

1. Indicator nature

Indicator nature means that financial indicator data reflects the overall and individual conditions of the national economy from all angles. The financial industry is a barometer of the development of the national economy.

2. Monopoly

On the one hand, monopoly means that the financial industry is an industry strictly controlled by the government. Without the approval of the central bank, no unit or individual is allowed to open financial institutions at will. ; On the other hand, it refers to the relative monopoly of specific financial businesses. Credit business is mainly concentrated in the four major commercial banks, securities business is mainly concentrated in national securities companies such as Cathay Pacific, Huaxia, and Southern, and insurance business is mainly concentrated in PICC, Ping An and Ping An. Taibao.

3. High risk

High risk means that the financial industry is a distribution center for huge amounts of funds, involving all sectors of the national economy. Organizations and individuals, any mistakes in their business decisions may lead to a "domino effect."

4. Benefit dependence

Benefit dependence means that financial benefits depend on the overall benefits of the national economy and are greatly affected by policies.

5. High debt operating performance

High debt operating performance means that compared with general industrial and commercial enterprises, their own capital ratio is lower. The financial industry plays an important role in the national economy and is related to economic development and social stability. It plays the role of optimizing capital allocation and regulating, reflecting and supervising the economy. The unique status and inherent characteristics of the financial industry make governments of all countries attach great importance to the development of their own financial industry.

Our country has a process of understanding and development of this. In the past, the development of my country's financial industry was slow and irregular. After more than ten years of reform, the financial industry has grown at an unprecedented speed and scale. With the steady growth of the economy and the deepening of the reform of the economic and financial systems, the financial industry has bright prospects for development.

Baidu Encyclopedia-Financial Industry