Legal Risk Compliance Of Commercial Bank Intermediary Business

With the development of global finance, commercial bank is undergoing tremendous transformation, one of which is that the business scope spreads from the tradition business such as deposition, loan to intermediary business. Commercial bank looks intermediary business as a weapon to promote its competition. As a result intermediary business develops rapidly.Early day people did not pay much attention to the risk of intermediary business, for they believe that the risk of intermediary business could not do harm to commercial bank. Until there came the bankruptcy of Bahrain International Bank (BIB), did people realize its importance after the risk of intermediary business brought about "earthquake" in the finance field.Commercial bank and the financial supervision institution around the world begin to take measure to control the risk of intermediary business. Commercial bank lowers the risk of intermediary business by self-construction and the financial supervision institution lowers the risk of intermediary business by opposite way.However, in the process of controlling intermediary business risk, the legal risk of intermediary is ignored. Many people think that it's no use establishing intermediary business law department, which could not profit commercial bank directly, on the contrary the other department of commercial bank could. So the construction of intermediary business law department goes slowly. They also could not acknowledge the sense of the rule of law. Consequently, intermediary business developed roughly. In western countries, the legal risk of the intermediary business has already gotten abundant attention, which can be seen from the establishment of the law department. It is useful for us to learn something from these advanced countries. In order to lower the legal risk of intermediary business, legal construction must be done.