About | HeinOnline Law Journal Library | HeinOnline Law Journal Library | HeinOnline

LOG IN
LOG IN


11 APLPJ 1 (2009-2010)

handle is hein.journals/aplpj11 and id is 1 raw text is: From Zero to Something: The Necessity of Establishing a Regulatory System of Financial Conglomerates in China Kuan-Chun Chang * I. INTRODUCTION ....................3..... ...................3 II. OVERVIEW ON THE EVOLVEMENT OF FINANCIAL CONGLOMERATES IN CHINA............... ............................ ...... 4 III. WHY IS AN EFFECTIVE SUPERVISORY SYSTEM FOR FINANCIAL CONGLOMERATES ESSENTIAL? ............. 7 A. Risks and Peculiar Supervisory Problems Associated with the Establishment ofFinancial Conglomerates ...... .......... 7 1. Double or Multiple Gearing (Leverage) ....... ......... 7 2. Risk Concentration ............................ 8 3. Risk Contagion .......................... ..... 9 4. Intra-group Transaction and Exposure .............. 10 5. Conflicts of Interests ..................... 10 6. Non-Transparency of Legal and Managerial Structure....... 11 B. Specific Reasons For Erecting A Specialized Supervisory System For Financial Conglomerates. ................. 11 IV. CURRENT FINANCIAL REGULATIONS REGARDING SUPERVISION OF FINANCIAL CONGLOMERATES IN CHINA .................. ....... 15 A. Banking Laws & Regulations ........................... 15 B. Insurance Laws & Regulations ..................... 18 C. Securities Laws & Regulations................ ........ 19 D. Structure ofRegulators. .................... ........ 20 E. Critiques ...................................... 21 V. EXTRACTING EXPERIENCES (1) -- LAWS AND REGULATIONS REGARDING THE SUPERVISION OF FINANCIAL CONGLOMERATES FROM THE UNITED STATES AND EUROPEAN UNION... ............. 23 A. The United States................................ 23 1. Restrictions on Affiliate Transactions ............... 24 2. The Gramm-Leach-Bliley Act........................ 28 B. The European Union ............................... 50 1. Financial Conglomerates ............... ......... 51 2. Supplementary Supervision...................... 53 3. Measures to Facilitate Supplementary Supervision ...... 58 4. Equivalent Supplemental Supervision for Parent Undertakings outside the European Union.... ........... 59 Assistant Professor of Law, National Chengchi University, Taiwan; SJD (with Distinction) Georgetown University Law Center 2007; LL.M. in Banking and Financial Law, Boston University 2002; LL.M., University of Pennsylvania 2001; M.B.A. in Risk Management and Insurance, National Chengchi University, Taiwan 2000; LL.B. National Chengchi University, Taiwan 1997.