The function of our financial system, what is the financial system of our country

Proceeding from the specific situation of our country, China's financial system implements indirect financing as the main and direct financing as the secondary, and implements the host bank system (the bank and the enterprise sign an agreement, and the host bank of the financial system should solve most of the reasonable capital needs of the enterprise in accordance with the credit principle, and at the same time supervise the major financial activities of the enterprise), and the funds required by the enterprise mainly rely on bank loans. The development prospect is to pay equal attention to direct financing and indirect financing.

The financial system is underdeveloped, the financial system market has just started small, the function is initially emerging, the financial system should actively develop the capital market, the financial system expands and standardizes the market, and the financial system creates the environment and conditions for the market and social supervision of the company.

Briefly describe the financial institution system in China.

According to the status and function of China's financial institutions, the main systems are as follows:

1.**Bank. The People's Bank of China is China's leading bank, established on December 1, 1948.

Under the leadership of the government, formulate and implement monetary policies, prevent and resolve financial risks, maintain financial stability, provide financial services, strengthen foreign exchange management, and support local economic development.

2.Financial regulators. China's financial regulators mainly include: China Banking Regulatory Commission, referred to as the China Banking Regulatory Commission; China's ** Regulatory Commission, referred to as the China Securities Regulatory Commission; China Insurance Regulatory Commission, referred to as CIRC.

3.Safe. Founded on March 13, 1979, it was managed by the People's Bank of China; In April 1993, in accordance with the Institutional Reform Plan approved by the First Session of the Eighth National People's Congress and the Circular on the Establishment of State Bureaus under the Administration of Ministries and Commissions and Related Issues, the State Administration of Foreign Exchange was the State Bureau under the administration of the People's Bank of China and was the administrative body that carried out foreign exchange management in accordance with the law.

4.Board of Supervisors of Key State-owned Financial Institutions. The board of supervisors is dispatched by the state and is responsible for supervising the asset quality of key state-owned financial institutions and the preservation and appreciation of state-owned assets on behalf of the state.

5.Policy-based financial institutions. China's policy financial institutions include three policy banks

China Development Bank, Export-Import Bank of China and Agricultural Development Bank of China. Policy banks do not aim to make profits, and their business is subject to national economic policies and business guidance from the People's Bank of China.

Commercial financial institutions. China's commercial financial institutions include three categories: banking financial institutions, first-class institutions and insurance institutions.

1. Clearing and payment functions, that is, the financial system provides a means of clearing and payment to facilitate the transaction of goods, services and assets;

2. The function of financing capital and equity refinement, that is, the financial system provides various mechanisms to pool funds and direct large-scale indivisible investment projects;

3. Provide channels for the transfer of economic resources in time and space, that is, the financial system provides methods and mechanisms to promote the transfer of economic resources across time, regions and industries;

4. Risk management function, that is, the financial system provides the means and ways to deal with contingencies and control risks.

In reality, countries around the world have different financial systems, and it is difficult to apply a relatively unified model of the situation to generalize. One is Germany, where a few big banks play a dominant role, and the financial market is very unimportant; At the other end of the spectrum is the United States, where financial markets play a large role and banks are very concentrated.

Between these two extremes are some other countries, such as Japan and France, which have traditionally been bank-based, but in recent years, financial markets have developed rapidly and become more and more important; The financial markets in Canada and the United Kingdom are more developed than in Germany, but the banking sector is more concentrated than in the United States.

The establishment and development of the financial institution system in New China has gone through the following stages: (1) 1948-1953: the initial formation stage.

On December 1, 1948, the People's Bank of China was established, marking the beginning of the new Chinese financial system and gradually becoming the only national bank in the country. (2) 1953-1978: "Great Unification" Financial System.

Its basic characteristics are: The People's Bank of China is the only financial institution in the country that handles various banking businesses, integrating the functions of leading banks and commercial banks, implementing a high degree of centralized management internally, and unified revenue and expenditure. (3) From 1979 to the beginning of the reform in September 1983.

The Bank of China, the Agricultural Bank of China and the China Construction Bank were established one after another, breaking the pattern of "great unification". (4) From September 1983 to the beginning of 1993, it took shape. During this period, China's financial institution system carried out a series of reforms, and in 1994 formed a financial institution system with the People's Bank of China as the core, the four major specialized banks as the main body, and the coexistence of various other financial institutions.

5) From 1994 to present. In 1994, the financial system was further reformed, and a financial institution system was established in which policy finance and commercial finance were separated from commercial finance under the macroeconomic control of the first bank, and a variety of financial institutions coexisted with state-owned commercial banks as the main body. This new system of financial institutions is still in the process of being perfected.

The current financial institution system in Chinese mainland is characterized by the People's Bank of China, the China Banking Regulatory Commission, the China Securities Regulatory Commission, and the China Insurance Regulatory Commission as the highest financial management institutions, and the implementation of separate supervision of various financial institutions.

The financial system consists of money circulation, financial markets, financial institutions, and financial instruments regulated by the monetary system.

In an economy, it is impossible to envisage the existence of a financial system if there is no real currency recognized by that economy, money as a continuum of measurement and means of payment.

The circulation of money regulated by the monetary system can be said to be the base platform on which the financial system depends. Some analyses do not include this constituent element in the financial system, but rather see it as a prerequisite for the existence of the financial system without the need to justify it.

The two forms of financing (direct and indirect) are often linked to financial markets and financial intermediation, respectively. Financial markets are the field of direct financing, and financial intermediation is the field of indirect financing.

Although real life is much more complicated, in any case, to raise funds outside of your own capital, you either look for financial markets or financial institutions. In other words, they are two complementary parts that make up the entity of the financial system.

It is extremely common to say that the financial system is made up of financial markets and financial intermediaries.