A Study On The Financial Product And Change Of The Financial Intermediary Based On The Transaction Cost Pattern

Although the Theory of Enterprise tells us that, the financial intermediary (FI) exists due to its reduction of the financial (or non financial) transaction cost, the Modern Theory of Financial Intermediation does not fully explain how the financial intermediation changes on its path. In order to solve this problem, this dissertation makes a theoretical and systematic study on the relationship between the financial product and the financial intermediary based on the transaction cost pattern, and hereafter reveals the intrinsic law of the change of financial intermediaries, which is that by producing and transacting financial products the financial intermediary not only reduces man's transaction cost but also receives impetus from"RTC", return of transiaction cost, to accelerate the change of itself. From the perspective of transaction cost pattern, this dissertation also make a further study on the definition and extension of the financial intermediation so as to make it more accurately explain why transaction cost reduction activities conducted by the financial intermediary extands from the financial territory to the non-financial territory. By following the basic law of the Transaction Cost Economy, this dissertation intergrates all the school of modern financial theory such as"asymmetric information","amended theory"of value added etc. into the transaction cost pattern, proves the existence of different elements of transaction cost relating to the financial intermediation,and deduces the formula of modern financial intermediary: R_t + R_v≥C_p+C_t. Based upon the theory of financial innovation, this dissertation proves that the financial product is a"response"to the change of transaction cost structure in the condition of the change of labor division, technology and institution in human society, and thus satisfies man's needs for financial functions prior to the financial intermediary. The innovation of financial product no only reduces the transaction cost, but also brings the financial intermediary the"RTC s"which enlarge the boundary of financial intermediary and benefit the financial product consumer (customer) by offering"efficiency"or"value", which is...