First, relax financial supervision.
Before 1980s, western countries generally regulated interest rates, such as setting the maximum deposit interest rate and stipulating that commercial banks should not pay interest on demand deposits. Although these controls have played a certain role in stabilizing the financial order, these early financial regulations have actually been difficult to meet the needs of economic development since the 1980s. Moreover, some negative effects of financial supervision on the financial industry have also stimulated the enthusiasm of financial innovation in western countries to a considerable extent. It is against this background that western countries set off a wave of financial reform characterized by "liberalization". The first is price liberalization, that is, the restriction on deposit interest rate, exchange rate control and fixed commission system in securities trading are abolished; Secondly, expand the business scope and operating power of various financial institutions to make them compete fairly; Third, reform the financial market, relax the restrictions on financial institutions entering the market, enrich financial instruments and financing technologies, and strengthen and improve the management of financial markets; Fourth, the liberalization of capital flows has been implemented, and the restrictions on foreign capital and foreign financial institutions entering the domestic financial market and the restrictions on domestic capital and financial institutions entering foreign markets have been relaxed one after another.
Since 1980s, the United States has put forward a new financial reform plan, gradually relaxed the control of deposit and loan interest rates, and tried to reform its old financial system. At the end of 1999, the United States also promulgated and implemented the Financial Services Modernization Act. The bill finally abolished the main provisions of the glass-steagall act formed by 1933, and removed the industrial barriers among banks, securities and insurance. Reform the interstate banking law and unify the domestic financial market; Allow industrial and commercial enterprises to have more ownership of financial institutions, thus expanding the capital sources of financial institutions. In Japan, the proportion of deposits with interest rate liberalization (including large time deposits, money market securities, large deposit certificates and foreign exchange deposits, etc. ) in the total amount of funds absorbed by banks and other financial savings institutions. Since 1989, Japan has also reformed the method of determining the benchmark interest rate for short-term loans. In the past, the benchmark interest rate was mainly determined according to the discount rate, but now factors such as financing cost are considered. While gradually liberalizing interest rates, Japan has also reformed Article 65 of the Banking Law, canceling the industry restrictions between banks and other financial services industries. Japan's "New Banking Law of 198 1" and the revised "Securities Exchange Law" stipulate that banks can handle government bonds, and at the same time allow securities companies to trade large negotiable certificates of deposit, and allow them to set up medium-term bond funds and open cash management accounts with these funds. In addition, securities companies are also allowed to issue unlimited loans guaranteed by public bonds to customers. In Britain, on October 27th,/kloc-0, the London Stock Exchange allowed foreign banks, insurance companies and securities companies to apply for membership of the exchange, and allowed banks or insurance companies outside the exchange and even foreign companies to buy 0/00% shares of the exchange member/kloc-0. This reform is called the financial "Big Bang", and its core is the liberalization of interest rates and financial services. 1985, the European community launched the "second directive on bank coordination" financial reform plan. The scheme stipulates that: first, financial institutions in EC member countries can set up branches in other member countries after obtaining business licenses in their own countries to operate a wide range of financial businesses approved by their own countries, such as deposit, leasing, participation in stock issuance and investment management. , regardless of whether the host country's banks are allowed to operate such businesses. Second, the principle of reciprocity should be followed when dealing with financial institutions in non-member countries. Any non-member country that gives European Community banks the same treatment as its domestic financial institutions can also get the same treatment in the European Community. During this period, many developing countries gradually implemented financial system reform under the influence of the theory of "financial deepening". For example, reducing government intervention in finance; Privatization of commercial banks; Liberalize interest rates; Implement financial opening to the outside world; Relax financial control and so on. In a sense, these reforms have improved financial efficiency and promoted the perfection and development of the financial system.
Since the 1990s, although there have been vicious incidents such as Mexican financial crisis, the collapse of Bahrain Bank and Asian financial crisis, which have delayed or hindered the process of financial liberalization to a certain extent, from the overall trend, with the implementation and effectiveness of financial reform programs in major western countries such as the United States, Japan and the European Community, and the improvement of financial supervision level in various countries, more and more marketization and internationalization factors are bound to penetrate into the financial development of various countries.
Second, financial innovation.
Generally speaking, financial innovation is mainly reflected in the development of options and futures trading, the emergence of a large number of new trading methods and financial instruments in the securities market, and the development of new trading technologies and services such as currency and interest rate swaps, note issuance facilities and forward interest rate agreements in the international business of banks.
In the early 1960s, financial innovation mainly evaded financial control and capital control, and the most representative financial innovations in this period were European currency, European bonds and parallel loans. The financial innovation in 1970s is different from that in 1960s. Innovation mainly transfers market risks, and floating interest rate bills, currency forward transactions and financial futures are the most representative financial innovations in this period. In the 1980s, the process of financial innovation accelerated day by day, and reached its climax in the mid-1980s. The financial innovation in this period is mainly the innovation of financing methods. According to the report of the Group of Ten Central Banks, the most representative financial innovations in the 1980s were note issuance facilities, swap, option trading and forward interest rate agreement, which were called the "four great inventions" of the international financial market in the 1980s.
Since 1990s, the wave of financial liberalization has continued. Western countries have generally relaxed their control over the domestic financial market, which has facilitated their residents to enter the European bond market for financing. At the same time, developing countries have also accelerated the pace of financial reform, relaxed financial control, and made their banking and financial systems more market-oriented. With the fierce competition in the financial industry, financial institutions provide customers with high-quality services that meet their needs, which also promotes the development of financial innovation to some extent. Although two financial crises broke out in 1994 and 1997, and many cases of huge losses similar to the collapse of Bahrain Bank, these cannot and should not stop financial innovation all over the world. At present, it is only a matter of time before various tools and methods to standardize and manage financial innovation.
Third, the globalization of financial markets.
Globalization of financial markets means that due to the progress of science and technology, financial innovation and liberalization of financial management, financial markets in various countries are closely linked with international financial markets, and gradually form an interdependent and interactive organic whole. With the liberalization of finance, developed countries are constantly exploring financial markets and seeking new ways of financial transactions in order to reduce competition costs and reduce and prevent investment risks. In this context, many developing countries also actively participate in the development trend of more open and unified financial markets, and interconnect with the financial markets of developed countries or regions to form a global financial market operation system, thus shortening the distance between international financial markets in time and space and realizing 24-hour uninterrupted business. Many developing countries and countries in transition in Eastern Europe have to "open their doors" and integrate into the international economic and financial cycle in order to accelerate their own economic development and implement the catch-up strategy, resulting in a large number of emerging financial markets. At present, China, Hongkong, Singapore, Bahrain, Panama and Cayman Islands have become important offshore financial markets in the world. In addition, these offshore financial markets have become "secondary wholesale markets" and "transit stations". Offshore financial market not only promotes the development of multilateral credit relations and monetary credit system between countries, but also strengthens the internationalization trend of production and capital. Moreover, through the inflow of borrowed funds from the international financial market, the surplus of capital account in China's balance of payments can be increased, the technical level of China's international financial business can be improved, and the objective needs of the international development of financial markets can be constantly adapted.
It should be said that the globalization of financial markets not only has a positive impact on the world economy and finance, but also promotes global financial activities, facilitates international investment and is conducive to the economic growth of all countries. But it also brings some new situations and new problems. In particular, the closer the financial markets of countries are, the deeper their interdependence will be. As long as a financial market is in turmoil, it will quickly affect or spread to other financial markets, resulting in the linkage effect of different financial markets. Therefore, this potential financial risk undoubtedly puts forward higher requirements and newer challenges to the international coordination and cooperation of financial supervision in various countries.
Fourth, financing securitization.
Since 1980s, there has been a feature of "financing securitization" in the international financial market, that is, financing has changed from bank loans to liquid debt instruments. In addition to lending to banks, fundraisers also raise funds directly from the international community in the securities market by issuing various securities, stocks and other commercial bills. After purchasing bonds and bills, fund suppliers can also sell their creditor's rights and convert them into funds or other assets at any time. Financing securitization is mainly manifested in two aspects: first, the securitization of financial instruments, that is, constantly raising funds through innovative financial instruments; The second is the securitization of the financial system, which means that the proportion of loans through banks and financial institutions has decreased, while the proportion of financial instruments transferred to third parties through issuance has increased relatively, that is, the so-called phenomenon of "disintermediation" or "disintermediation" of funds.
Before 1980s, international credit was the main way of international financing, which greatly exceeded the amount of international bond financing. Since 1980s, the status of international bonds has increased year by year. 1981-1988 international bonds accounted for 26.4%, 42.4%, 48.2%, 45.3%, 58.9%, 70.9%, 59.02% and 62% of the total international financing respectively. 8 %。 1985, the proportion of international bonds in the total international financing exceeded that of international credit for the first time, and the proportion of international bonds has been increasing since then. At present, this proportion has been roughly maintained at around 70%.
In the United States, financing securitization is the most obvious, which has penetrated into almost every corner of economic life and become a new competitive field of investment banking. First, banks securitize their assets, that is, collect their illiquid creditor assets such as accounts receivable or loans and sell them to third parties to issue bonds to raise funds. By the end of 1988, the scale of bank securitization mortgage loan has reached 770 billion US dollars. By the end of 1990, there were 1/3 mortgage loans securitized in the United States; From 1983 to 1990, the loan sales in the United States rose from $27 billion to190 billion. The securitization of bank assets not only reduces the credit risk, but also increases the ratio of capital to assets. Therefore, it is a successful attempt for large banks to use their own advantages to combine the traditional lending market with the securities market. Secondly, non-financial enterprises raise funds for securitization, and large enterprises issue bonds or commercial papers in the financial market to raise funds. From 1984- 1989, the proportion of American bond financing in total financing is 4 1%, 55.7%, 69.2%, 82.3%, 65.8% and 63% respectively. After 1990, bond financing exceeded credit financing without exception. In the process of securitization, the issuance of commercial paper partially replaces the short-term credit of banks to companies. From 65438 to 0995, the funds raised by American non-financial companies by issuing commercial paper were basically the same as the loans obtained from banks.
In recent 20 years, international financing securitization has promoted the rapid development of the international capital market. Relatively speaking, the development speed of international bond markets is faster than that of the stock market. In particular, issuing international floating interest rate bills has become an extremely important way of international financing, which not only promotes the free flow of international capital, but also stimulates the economic growth of various countries.
Verb (abbreviation for verb) Internationalization of banking.
Since the 1980s, the relaxation of financial management, the increase of bank risks, the continuous innovation of financial instruments, the rise of universal banks and the development of transnational settlement system have all led to the accelerating trend of internationalization of bank operations. The cross-border development of banking not only accelerates the international capital flow and the wide application of new financial tools and technologies, but also accelerates the globalization of financial markets.
Throughout the 1980s, the world's major banks devoted themselves to setting up offices, representative offices and branches in all continents and countries, establishing overseas subsidiaries and affiliated financial institutions, and even establishing non-financial branches, and forming joint ventures or international banking groups with other banks. In this regard, the overseas expansion of Japanese banks is really remarkable. According to statistics, during the period of 1983- 1989, the assets of international banks increased from $223.3 billion to $5139.2 billion, among which the assets of Japanese banks increased from $475 billion to 19672 billion, with an increase rate of 33%, accounting for 33% of all assets. In the United States, bank assets increased from $608 billion to $727.4 billion, with an increase of only 19.6%, accounting for only 14%.
By the early 1990s, large banks in developed countries, newly industrialized countries in Asia and some developing countries had set up branches in other countries to enhance their own strength. For example, Citibank has set up 135 branches in 65 countries and regions. By the end of 1990, there were 67 branches and more than 60 offices of foreign banks in Korea. Relevant data show that among the top 200 banks in the world with 1992, the average proportion of overseas assets of 25 banks is 36%, that of about 50 banks is 27%, and that of about 100 banks is 19%. Moreover, the bigger the bank, the higher the proportion of overseas assets and the greater the overseas business volume.
Since the 1990s, the internationalization of banking operations has further developed towards globalization, and gradually formed a reasonable division of international business and domestic business, that is, large banks compete in the international financial market, while small and medium-sized banks develop in the domestic financial market. Even within the same group, there is a similar "division of labor" between different institutions. Of course, this division of labor has no strict boundaries, nor has it cut off the flow of Chinese and foreign assets. It should be said that with the weakening or elimination of the impact of the financial crisis in Mexico and Asia on the world economy and the continuous strengthening of international financial supervision, the financial industries of various countries will continue to explore new international business areas, and multinational banks will make necessary integration of their overseas financing structures, reduce traditional trade financing business and increase investment banking business; At the same time, it will increase the proportion of its off-balance-sheet business, provide services that the host country cannot provide, and further promote the process of financial internationalization.
Integrated banking business with intransitive verbs
In the early 1980s, the restrictions on banks in the world were gradually lifted, and the omnipotence of banking business was further developed. The specific manifestations are as follows: First, relax the restrictions on the scope of banking business. Since financing bills seized most of the deposit and loan business of banks, western countries began to allow all financial institutions to participate in securities trading in the 1980s. For example, in 1980, the United States allowed commercial banks and savings institutions to properly cross their businesses. 1984 allows small and medium-sized banks that are not members of the federal reserve system to engage in securities business; 1987 allows bank holding companies to underwrite mortgage securities of local bonds and commercial paper; 1989, five banks, including Citigroup, Chase and Morgan, were allowed to underwrite corporate bonds and shares. These undoubtedly broke the provisions of the American banking law prohibiting banks from operating securities business, and made the banking business take a big step towards omnipotence. In Japan, commercial banks have been allowed to buy and sell government bonds since 1983. Three banks are also actively involved in the field of personal retail loans. Since 1990s, the off-balance-sheet business of banks has made great progress, and the integration of banks and insurance has further deepened. At the end of last year, US President Bill Clinton approved the Financial Services Modernization Act, which will undoubtedly bring a more profound "financial revolution" to the US and even the global economy. The bill removes the boundary between banks, securities and insurance, and allows financial institutions to operate multiple businesses at the same time to form "financial department stores" or "financial supermarkets". Secondly, since the 1970s, due to the rising market interest rate, there has been a non-banking trend in corporate financing. In this context, in 1980, the United States decided to cancel the interest rate ceiling control within seven years. Followed by Canada, West Germany, Japan and so on. The restrictions on bank deposit interest rates have been cancelled one after another. Third, abolish foreign exchange control, promote the free flow of capital, and enhance the competitiveness of domestic banks in the international financial market. Britain abolished foreign exchange control in the late 1970s. In 1980s, Japan, France, Italy and other countries also gradually abolished foreign exchange control. Fourth, relax other financial restrictions to facilitate domestic banks to enter foreign markets and foreign banks to enter their own markets. Western countries have basically abolished the restrictions on the scope of activities of financial institutions between countries. 1986, Britain started the great reform of the financial industry, relaxed the restrictions on the financial industry, allowed banks to buy securities companies, and the London Stock Exchange cancelled the minimum fee limit and the differences between brokers and wholesalers. On the other hand, in 1985, West Germany announced that it would cancel the restrictions on its residents to buy foreign securities and overseas marks, and exempt foreign residents from interest withholding tax from 1989, and so on.
It can be seen that the development of financial industry from the specialized mode of "separate operation and management" to the all-round mode of "comprehensive operation and management" has become the mainstream of international financial industry.
Seven. Centralization of bank capital
Since the 1980s, with the gradual relaxation of financial control in various countries, banks in various countries have rapidly launched fierce competition on a global scale. This has not only led to the decline of the bank's rate of return and the bank's capital-asset ratio, but also led to the mutual merger of banks around the world. Relevant data show that in 1980s, the average number of bank mergers in the United States exceeded 300 per year, twice as many as in 1970s and three times as many as in 1960s. Many large banks have even embarked on the road of union. Since the 1990s, this trend of bank merger and union has become increasingly rapid, showing the characteristics of "a large number of merged banks and large-scale merger of powerful banks".
In the United States, 1995, more than 1000 banks in the United States joined the merger, greatly exceeding the number of 550 banks merged last year. 1996165438+1On October 20th, Chase Manhattan Bank and Hanwha Bank merged to form Chase Manhattan Bank Company 3 1998. On March 4th, American Foley Financial Group announced that it would merge Boston Bank for1600 million dollars. On April 6, Citigroup, the holding company of Citibank in the United States, merged with Traveler Group to form Citigroup. The total amount is as high as 72.6 billion US dollars. In the first half of 1998, the total value of mergers and acquisitions of American companies has reached $93 100 billion, which is higher than the total value of mergers and acquisitions in 1997. In Europe, the deepening of European economic integration and the start of Euro provide a good opportunity for the merger of the banking industry, which has led to a series of merger activities, such as the merger between Swiss Bank and UBS Group AG, the merger between Bavarian Union Bank and German Yubao Bank, the merger between German Bank and Dresden Bank, the merger between Italian Gary Baglombardy Savings Bank and Ambrose Bank, and the merger between French National Bank and Industrial Bank and BNP Paribas. From 65438 to 0998, the total transaction volume of M&A in Europe has reached $85.9 billion. Driven by the single European currency, the total amount of M&A transactions in the first quarter has reached 468 billion US dollars. In Japan, inter-bank mergers and acquisitions have become a means to solve bank bad debts and maintain the stable operation of the financial system. 1995 On March 8th, Bank of Tokyo and Bank of Mitsubishi announced the merger and established Bank of Tokyo-Mitsubishi. 199818 On May 3rd, Nomura Securities, Japan's largest securities bank, announced an alliance with Industrial Bank of Japan. Soon, Fuji Bank and dai-ichi kangyo bank announced the formation of a new trust bank.
In developing countries, the banking industry has also carried out M&A activities and set off an upsurge. Although banks in developing countries have been engaged in M&A business for a short time, their development speed is quite fast, especially in ASEAN countries. According to incomplete statistics, from the beginning of 1997 to1June 1998, the number of banking mergers and acquisitions in developing countries reached more than 200, and the total assets of mergers and acquisitions exceeded 300 billion US dollars, involving more than 20 developing countries such as Asia, Latin America and Eastern Europe.
Since 1990s, bank mergers and acquisitions have pushed the international concentration of bank capital to a new height. Nowadays, multinational banks have become market operators and financial giants. It not only absorbs funds from the world, but also lends funds to the world, becoming the main undertaker of the international flow of money and capital. It can be seen that these activities will undoubtedly promote the development of banking business to a higher level of globalization.
Eight, the financial industry electronic network
The rapid development of modern information technology provides the necessary material basis for the electronization of financial services. In the 1990s, an electronic, automated and modern financial service system was basically formed in the international financial field. In banking activities, advanced electronic science and technology are widely used in financial services such as deposit, withdrawal, transfer, remittance, audit, exchange, control, financial transaction and consultation, and connect banks with customers, banks with banks, and customers with customers into an electronic network.
With the development of information network technology, both developed and developing countries are stepping up the realization of electronic networking of financial systems, and online banking has emerged as the times require, which has become the basic trend of world financial development. The main reasons for this trend are as follows: First, with the fierce global financial competition, banks in western countries will strive for customers, participate in competition and develop their business with excellent and efficient electronic services. Secondly, with the rapid development of modern science and technology, it is possible to provide electronic, automated and networked services for banks. Thirdly, computer and communication technology have become the link of international financial market integration and an important tool to realize the all-weather operation of global financial activities. The strong combination of these factors makes global financial integration deeply dependent on the development of electronic and networked financial services, and also profoundly reflects the characteristics of the times of electronic and networked financial services in all countries of the world.
Nine. Diversification of international monetary structure
From gold standard to the construction of 1945 Bretton Woods system; The decline of the position of the United States in the western economy in the 1960s to the collapse of the Bretton Woods system in the 1970s reflected the increasingly diversified development process of the international monetary system. Before the 1990s, the international monetary system showed an international monetary pattern of "US dollar as the mainstay, Japanese yen and mark as the supplement". After the 1990s, the status of the US dollar was weakened, while the status of the Japanese yen and the German mark was continuously enhanced, thus forming a diversified international monetary pattern with equal emphasis on the US dollar, the Japanese yen and the German mark.
The main reasons for this pattern are as follows: First, apart from the US dollar, the Japanese yen and the mark are the most used currencies in world trade and financial activities. From 65438 to 0988, the currency composition of the total foreign exchange reserves of central banks in the world is: US dollar accounts for 65%, German mark accounts for 16.2%, and Japanese yen accounts for 7.2%. In the five years to the end of 1988, the total foreign exchange reserves of various countries increased by 48%, of which the US dollar increased by 34%, while the Japanese yen increased by 1.28 times and the German mark increased by 1. 18 times. During the period of 1983- 1988, among the creditor's rights of 24 industrialized countries and regions, the proportion of US dollars decreased from 75.7% to 57.8%, the mark rose from 6.4% to 10. 1%, and the yen rose from 3.4% to. Secondly, in the international financial market, in order to prevent and avoid the risk of market fluctuation, countries generally adopt the strategy of optimizing the combination of US dollar, Japanese yen and mark in the selection and use of currencies, especially in the currency composition of foreign exchange reserves of central banks. In the total loans of international banks, although the US dollar accounts for 53%, the Japanese yen accounts for 65,438+03%. Regionally, the yen accounts for 30% of Indonesia's and Malaysia's foreign debts, while Thailand accounts for 40%. Mark has accounted for 34.93% of the European monetary unit, a basket of currencies in the European monetary system. Mark has accounted for more than 30% of transactions and financial services in the foreign exchange market, making it an important currency in the foreign exchange market after the US dollar. The scale of mark as an investment currency is also expanding day by day.
1 99965438+1October1,the euro was officially launched. No matter from the international trade settlement means or the reserve currency, the euro will become a strong competitor of the US dollar. Although the euro is weakening all the way, it is an indisputable fact that it will become one of the important reserve currencies in the world. With the integration process of the European Community, the euro will play a more important role. After the euro finally becomes the single currency of the European Union, the share of the euro in international trade settlement and foreign exchange reserves of various countries will definitely increase, while the dominant position of the dollar will be weakened accordingly. It can be seen that the diversified international monetary pattern of dollar, euro and yen is taking shape.
X. Internationalization of financial supervision
Since the 1980s, the innovation and development of the world financial industry has shown a vigorous development trend, while the capital/assets ratio of banks has been declining and financial risks have been increasing. How to maintain the security and stability of the financial system without affecting innovation, efficiency and market development is undoubtedly a major problem faced by financial supervision departments in various countries.
From 65438 to 0988, representatives of the central banks of ten western countries, Luxembourg and Switzerland jointly signed the Agreement on Unification of Capital Calculation and Capital Standards of International Banks (collectively referred to as the Basel Agreement) in Basel. The Agreement clearly stipulates and requires the capital adequacy ratio, the concept of capital connotation and the calculation of risk weight. Since the adoption of this agreement, banks in major western countries have increased their capital/asset ratios to varying degrees. Weaker banks increase their capital/assets ratio by selling loans and reducing credit, while stronger banks increase their capital by issuing shares in the capital market. The obvious effects of the agreement are as follows: first, it inhibits the impulse of banks to increase assets; The second is to urge the government to supervise banks, instead of controlling banks by imposing various restrictions on their business activities.
In the international supervision of the securities industry, since the stock market crash in NYSE caused a chain reaction in the global securities market, major western countries have begun to pay attention to the importance of international cooperation in securities market supervision in addition to strengthening supervision of domestic securities markets. To the stock market