Studies on the Influence of China’s Financial Assets Structure to the Financial Efficiency
|Keywords||Financial structure Financial assets Financial efficiency|
The development of a country’s financial system depends either on the increase of financial assets and institutions or the improvement of the structure of financial assets. The increase of financial quantities always reflects the improvement of the national economy and the development of economy finacialization. As well, the change of the structure, in some degrees, reflects the depth of the development of finance and the improvement of the structure of market. The change of the structure of financial assets has been put on the high light by scholars home and abroad for a long time. In addition, the relationship of the structure of financial assets and the efficiency of financial system is being under discussion with the deepening of the economy currencialization.With the developing of national economy, the industry of finance maintains speedy development. On one hand, the operational capability of financial institution is strengthening with the foundation of multiple systems. On the other, the financial markets are approaching the maturity, and the services are improving at the same time. All the factors above have sustained the development of China’s economy. However, the adjusting of the structure of financial assets is not better than expectation. The mainly problems are listed as follows: To begin with, the proportion of bank financial assets is overlarge with the uncoordinated of the financial development structure and convergence of risk in banks. Furthermore, the ratio of M2 to GDP is increasing so fast that the liquidity of generalized currency in long term is being slop down with the slowing of the speed of currency. These problems have direct influence on the efficiency of the operation of financial institution and financial market as well as the macro-policy control. Consequently, it is essential to learn the relationship between the structures of financial assets and the factors above so as to study the improvement project of the structures of financial assets.The financial assets may be described in two classes: banking financial assets and non-banking financial assets. In specifies, the mainly assets are currency financial assets and security financial assets. The scale and proportion of these assets reflect the degrees of finacialization and market improvement. The financial efficiency may be defined as the operational capability and also can be classified in macro- efficiency and micro- efficiency. The macro- efficiency refers to the rate of transform of saving and investment, while the micro-efficiency refers to the efficiency of financial institution operation. From the regression analysis of the data of the structure of financial assets, we can get the point that the supply of currency has the most direct influence on financial efficiency and the adjusting measures of the structure of financial assets should be taken in following ways: improving the operational qualities, expending the financial channel of non-state owned enterprise, deepening the construction of capital markets, developing the securitilization. All these measures will improve the total qualities and the stability of financial assets as well as the operational efficiency of financial markets.