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.

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.

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.

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 reorganized 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.

Characteristics of foreign-funded financial institutions:

Compared with the development of foreign investment banks for hundreds of years, the investment banks in China have only a short history of more than ten years. Compared with the two, there are differences in development process, organizational structure, development status and capital scale. At present, China's investment banking business is still in a very immature stage, and it can't be compared with large international investment banks in many aspects, such as business quality, quantity, personnel quality, business innovation ability, anti-risk ability and so on. In addition, due to the short history of China's capital market development, the legal environment and institutional environment of investment banks are also in a perfect stage.

Characteristics of the development of international investment banks

After hundreds of years of development, international investment banks are now very mature, especially the development model of American investment banks, which has now become a common model of international investment banks. The development of international investment banks has distinct characteristics.

2. 1 government guidance and legal system construction play a decisive role in the development of investment banks.

Throughout the development history of investment banks in Europe and America, the legislation on investment banks has directly affected the business innovation and organizational structure reform of investment banks, and the government's support and guidance have enabled investment banks to tide over the difficulties many times. Taking the United States as an example, the Securities Law and Glass-Steagall Law passed by Congress in 1933 and the Securities Exchange Law promulgated in 1934 had a far-reaching impact on the development of investment banking, strengthened the information disclosure system, reformed the way of securities issuance and promoted the standardization of the secondary market. . Among them, glass-steagall act is of great significance in the legislation of investment banks. It stipulated the mode of separate operation of investment banks, brought the biggest revolution in the history of American banking, saved American investment banks that were on the verge of extinction in the 1929- 1933 crisis, and created a new generation of American investment banks. To be sure, without glass-steagall act, we wouldn't have invested in the glory of the banking industry today. 1975, the United States abolished the fixed commission system for securities brokers. Competition led to a sharp drop in commission income, and investment banks were forced to vigorously carry out other innovative businesses. The government's guidance once again induced the innovation revolution of investment banks, and financial products such as interest rate futures, interest rate options and asset securitization developed rapidly. It provides a strong guarantee for investment banks to resist the influence of market uncertainty. In 1980s, the United States promulgated the Deregulation of Depository Institutions Act and the Reorganization, Revival and Strengthening of Financial Institutions Act, and implemented Article 4 15 of the Securities and Exchange Commission (SEC Rule 4 15). Deregulation of markets and institutions has been relaxed, and American investment banking has returned to mixed operation; The international competitiveness of American investment banks has been enhanced, and a large number of investment banking institutions have been integrated, resulting in the emergence of super investment banks such as Morgan Stanley Tianhui and Citigroup-Traveler Group. In fact, not only in the United States, but also in Europe, Japan and East Asia, the development process of investment banks includes the support of laws and government systems. The construction of legal environment is very important for the development of investment banks. Without a sound legal system and institutional basis, the investment banking system must be full of loopholes, as can be seen from the collapse of Bahrain Bank.

2.2 Capital scale, service specialization and business diversification are the main lines for the development of investment banks.

In the early stage of the development of investment banks, due to mixed operation, few investment banks consider the risk of capital; Investment banking business is mostly concentrated in securities underwriting and securities trading, and there are few innovative businesses; However, with the continuous development of the world economy and the intensification of competition in investment banking, and the changes in the legal and policy environment of various countries, the international capital market has undergone earth-shaking changes. From 65438 to 0975, the United States took the lead in reforming the stock exchange. Subsequently, Britain and Japan also carried out the financial system reform called "Financial Big Bang" respectively, and liberalization became the theme of investment bank development. The liberalization of transaction costs, industry entry and capital transactions has become the development trend of the international capital market.

Securities reform and liberalization have greatly promoted the development of the securities market. At the same time, as the most important intermediary in the securities market, investment banks are facing unprecedented market competition. For example, although the price index of Standard & Poor's 500 stocks in the United States rose six times at 1982- 1996, the commission for stock trading in Britain and the United States decreased by 40% due to the competition of handling fees. In this case, investment banks began to develop and expand innovative and profitable businesses to subsidize other businesses, which promoted the diversified development of securities business. According to the investigation on the changes in the income structure of members of new york Stock Exchange, in the past 20 years, the proportion of the original business income: fee income in the total income has dropped from 565,438+0% to 65,438+05%. In the new business, fund income increased from 1% to 4%, asset utilization increased from 0% to 4%, and securities-related income such as mergers and acquisitions and private placement increased from 2% to 39%; The proportion of innovative business in total revenue is increasing significantly.

On the other hand, the intensification of competition leads to the further expansion of the risks of investment banks. In order to increase their ability to resist risks, investment banks all over the world are constantly increasing their capital scale. Since 1980, the capital of nine large investment banks in the United States has increased by more than 10 times. 1980 The total assets of American investment banks were $64 billion, and 1988 reached $476 billion. The intensification of competition has also led to the specialization of investment banking services. There is a growing demand for excellent securities brokers and securities analysts in the market, and customers' requirements for investment banking services are becoming more and more professional. Service quality has become one of the key conditions for investment banks to develop customers and expand their business. In order to reduce operational risks and improve anti-risk ability, investment banks must take expanding scale, improving service quality and expanding business scope as the main line of development.

Third, the development trend of international investment banks

Since 1970s, there have been some new trends in the development of international investment banking, especially in the past three or five years. It is not an exaggeration to describe the development and changes of international investment banking with rapid development. The development trend of international investment banks is mainly manifested in the following aspects:

3. 1 moving towards mixed operation again

The separate operation pattern started in the United States 1933 and 1934 has been going on for more than 50 years. Although the promulgation of glass-steagall act has provided a stable legal basis for the development of American investment banking, with the rapid development of international investment banks, its shortcomings have gradually emerged: the securities market based on investment banks is full of risks, and with the increasing complexity of financial instruments, financial risks have also increased accordingly. While obtaining high profits, investment banks are also facing huge security challenges from high risks. Although investment banks can design many technical means to avoid risks, in essence, what investment banks lack most is capital; In addition, people began to reflect on glass-steagall act. In the 1980s, the United States re-recognized the great crisis of 1929- 1933, and thought that the chief culprit of bank failure at that time was not mixed operation, but the decrease of money supply and the low capital adequacy ratio of banks. In addition, the successful operation of several mixed investment banks in Europe also challenges the authority of glass-steagall act.

In this case, the developed countries confirmed the mixed operation mode through legislation: from 65438 to 0986, the "financial explosion" was carried out in Britain, and the British banking industry was liberalized; 1989, the European union issued the "bank-to-bank business directive No.2", which clearly stipulated that the universal banking system should be implemented within the European union. In Japan, the financial system amendment bill promulgated by 1992 also allows investment banks to operate in mixed operations.

In fact, the international investment banking industry has begun to change from separate operation to mixed operation. From 65438 to 0986, Goldman Sachs accepted the investment of 900 million dollars from Sumitomo Bank of Japan, and the dividing line between investment banks and commercial banks began to change. Later, JPMorgan Chase began to apply for high-grade investment bonds first, then for high-yield bonds, and then for stock underwriting. Now, JPMorgan Chase is no different from general comprehensive investment banks. 1996 salomon brothers acquired Smith Barney, a retailer second only to Merrill Lynch. And was acquired by American traveler insurance group. Travelers merged with Citibank after acquiring Solomon. Now Citigroup-Traveler Group is a financial giant. Nowadays, consumers from anywhere in the world have entered Citigroup-Traveler Group, providing services from bank account opening, cheque, credit card, life insurance, property insurance, stock issuance, bond trading and fund purchase. Its development has become a very important symbol of mixed operation.

From 65438 to 0999, the United States Congress passed the Financial Services Modernization Act, which abolished the glass-steagall act, thus legally confirming the mixed operation mode of the United States. In 2000, the Federal Reserve officially approved Chase Bank to acquire JPMorgan Chase Investment Bank for $35.2 billion, thus merging into the largest investment bank in the United States today, with total assets reaching $662 billion. If Chase Manhattan Bank finally succeeds in acquiring JPMorgan Chase Investment Bank, the merger of the two most famous companies on Wall Street will become a real "financial supermarket".

3.2 scale

At present, the international market is dominated by a few large securities companies, which constitute the leading and pillar of the securities industry. From the 1970s to the 1990s, the capital of the top ten investment banks in the United States increased from one-third to two-thirds. As early as 1990, there were already five investment banks with capital exceeding 2 billion dollars in the United States, as well as the securities industries in Britain, Germany, France and Japan. Investment banks now have larger assets. The assets of the world's major investment banks are generally as high as hundreds of billions of dollars, and the equity capital has reached billions and tens of billions. Especially in recent years, the continuous merger and reorganization of the financial industry has created many financial giants. Table 1 is the basic information of the top ten investment banks in the world based on comprehensive capital. This shows that the scale of capital assets of international investment banks is amazing.

3.3 Centralization

Both original investment banks and modern investment banks have experienced a development process from small to large, from weak to strong, from decentralized to centralized. Japan 1949 has 1 152 securities companies, and 1977 has only 257. Super investment banks such as Merrill Lynch, Morgan Stanley and salomon brothers in the United States are almost all formed through mergers and acquisitions. After the 1990s, the merger and acquisition of American investment banks has been accelerated, and the scale has become larger and larger. 1In February, 1997, Morgan Stanley merged with Tianhui Company to create a super-large investment bank with a total market value of 210 billion US dollars. In September of the same year, Traveler Group acquired salomon brothers Company and merged with Smith Barney Company, becoming the fourth largest investment bank on Wall Street after Merrill Lynch, Goldman Sachs and Morgan Stanley. 1April 1998, Citibank merged with Traveler Group. Recently, Chase Manhattan Bank acquired JPMorgan Chase Investment Bank for US$ 35.2 billion, becoming the largest investment bank in the United States, with total assets reaching US$ 662 billion. The direct consequence of the merger of western investment banks is the high concentration of the whole industry.

3.4 Modernization

In the era of information explosion, information plays an increasingly important role in economy and society, and the speed and ability of information collection, screening, processing, transmission and utilization are increasingly becoming one of the decisive factors for enterprise development. Accordingly, in order to seek and build a strong market competitiveness in the future, the informatization wave of investment bank management and operation is quietly rising. On the other hand, the securities industry is an industry that uses a lot of high-tech information technology. With the rapid development of information technology, the technical equipment and service means of investment banks are becoming more and more modern. Its increasingly advanced trading system and communication system not only make the issuance and trading of securities break through the time and space boundaries of the business department, but also make it faster and more accurate. In particular, the widespread popularity of the Internet and the rise of e-commerce have brought about great changes in the way of securities trading. Online trading has become a reality, and people can receive and trade the stock market in real time through the Internet. Online trading has developed rapidly abroad because of its high efficiency, safety, convenience and low transaction cost, information cost and operation cost.

3.5 Business diversification

Since 1970s, with the progress of technical means, the relaxation of financial control, the rise of financial liberalization and the development of international capital market integration, great changes have taken place in western investment banking. In addition to the traditional securities underwriting, brokerage and proprietary business, western investment banks also go deep into many fields, such as mergers and acquisitions, asset management, investment consulting, project financing, venture capital, financial derivatives and so on, and various businesses go hand in hand. Before the 1980s, underwriting and brokerage business was always the most important and profitable department of investment banks, but as a traditional business, its market segmentation was basically a foregone conclusion, that is to say, the competitive flexibility in this field was already very small. Therefore, in the 1990s, investment banks had to explore new business areas as a breakthrough for their survival and development. These businesses earned huge profits for investment banks in the 1990s, far exceeding the profits of traditional businesses. Tables 2 and 3 are the main income distribution tables of Merrill Lynch and Morgan Stanley 1997. As can be seen from the table, the income from traditional businesses such as commission, self-management and underwriting only accounts for about 30%, while the income from various innovative businesses has exceeded 50%.

3.6 Specialized division of labor

While international investment banks are gradually developing towards large-scale and diversified operations, different investment banks still have their own specialties in their main business. Mixed operation does not mean that every investment bank must operate all investment banking businesses. Further fierce competition also makes investment banks have to find their own advantageous business, and on this basis, take into account the development of other businesses. For example, Pei Weber has firmly occupied the field of private client investment services in the United States. The most famous salomon brothers companies in the United States are government bonds and asset-backed bonds. Ameritrade, E-Trade and Charles Schwab have advantages in online securities trading, and Merrill Lynch has become the largest securities retailer. Specialized division of labor has promoted the improvement of the service level of investment banks.

3.7 Globalization

In today's highly integrated world economy, the global financial market has basically become a whole that can no longer be simply divided. Accordingly, investment banks have completely crossed the geographical and market restrictions, engaged in more and more extensive international business and become global investment banks. Since the 1960s, the world's major investment banks have expanded overseas, and new york, London, Paris, Tokyo, Geneva and other financial centers have accepted a large number of branches of foreign investment banks. In the 1990s, the internationalization of investment banks was obviously accelerated, and many large investment banks became real international investment banks. Their global business network tends to be perfect, the scale of international business expands rapidly, and they have a large number of foreign assets. Many investment banks have set up specialized agencies to manage international business, such as Morgan Stanley's Financial Management and Operations Department and Goldman Sachs' Global Compliance and Control Committee. It is also the high profit of investment banks' international business that supports the rapid development of large international investment banks.