Comparison of Financial Systems in China and in the USA

Fan Zhang

Bachelor's thesis

Abstract:

As we all known that financial system is kind of intricate system. According to their actual conditions, each country has its own financial system. To observing different kinds of financial system we can divide them to two parts by their imparity and something in common. The first camp is bank-based financial system, it is typically in German and China also used this system, and at the end of 19th century, the economist in German said that the system in German which is bank-based system help them to past market-centered United Kingdom as an industrial power. And another one is market-based financial system, it is typically in American. Financial system is complex system with lots of participants. It consists of lots of institutions (bank, insurance company), borrowers (government companies) and lenders (investors). These participants will help companies and investors to build their relationship. In a word, the main aim of the financial system is to transport the fund from surplus units to deficit units. And these financial institutions service as financial intermediaries in financial market, this function facilitate fund from surplus units to deficits units, at the same time it also service as middleman in financial market between the investors and companies, this function can reduced the commission fee or transaction cost, and also can transformation the risk and maturity.

Abstract:

As we all known that financial system is kind of intricate system. According to their actual conditions, each country has its own financial system. To observing different kinds of financial system we can divide them to two parts by their imparity and something in common. The first camp is bank-based financial system, it is typically in German and China also used this system, and at the end of 19th century, the economist in German said that the system in German which is bank-based system help them to past market-centered United Kingdom as an industrial power. And another one is market-based financial system, it is typically in American. Financial system is complex system with lots of participants. It consists of lots of institutions (bank, insurance company), borrowers (government companies) and lenders (investors). These participants will help companies and investors to build their relationship. In a word, the main aim of the financial system is to transport the fund from surplus units to deficit units. And these financial institutions service as financial intermediaries in financial market, this function facilitate fund from surplus units to deficits units, at the same time it also service as middleman in financial market between the investors and companies, this function can reduced the commission fee or transaction cost, and also can transformation the risk and maturity.

Keywords

Market-based financial system, Bank-based financial system, China, USA, FED, Central bank, Commercial bank, Stock market, Bond market, Options, Futures.

Keywords

Market-based financial system, Bank-based financial system, China, USA, FED, Central bank, Commercial bank, Stock market, Bond market, Options, Futures.

Language used: English

Date on which the thesis was submitted / produced: 5. 5. 2017

Thesis defence

• Date of defence: 7. 6. 2017
• Supervisor: Haochen Guo
• Reader: Kateřina Kořená

VŠB - Technical University of Ostrava

Ekonomická fakulta

Bachelor programme / field:
Hospodářská politika a správa / Finance