Research On Development Strategy Of Commercial Banks' Intermediary Business

The direction of business running of commercial banks varies with the change of economic financial environments. The laws that bank adjust continually its business structure for seeking the roads of living and development is embodied in the business adjustment from assets management to liabilities management to assets-liabilities management. To the 70's of the 20th century, commercial banks encounter intense shock again. A series of innovation of types of intermediary business make it become a important part of banking running. Intermediary business, assets business and liabilities business are regarded as three big pillar business of commercial bank. Intermediary business achieves full development, as a result of its advantages of low costs, risk and high income. A problem that isn't neglected is the marketing strategy in the running and management of it. It just pays more attention to the application and management of the marketing strategy and adopts variously comprehensive ways such as traditional and modern relation marketing and so on. The risk of it of banks is lower than that of assets and liabilities business, but it can't be neglected. Now it has already become the trouble of safe running of banks, which extremely leads to bankruptcy of some famous banks. Intermediary business, especially risk and judgment and control of off-balance sheet activities has become the focus of the attention of the central and commercial banks. To compare with the banks in the western countries, the development of intermediary business in China is still in a primary stage, which is something with the special financial system of China. Now, China has entered the WTO. Commercial banks will be integrated further into competition of international markets. Undoubtedly, more attention should be paid to intermediary business. The banks in China should take full advantages of the good opportunities and strive to improve their qualities, in order to meet new challenge and competition.This paper explains the origin, development, status, function and actuality of intermediary business of commercial banks systematically, advances some question, and puts forward to some new suggestions concerning further developing intermediary business of commercial banks in China. Especially, this paper analyzed the charge issue on intermediary business of commercial banks by model-method, suggests that commercial banks should engage in propaganda for intermediary business so that the difference between banks and clients would be reduced, on the other hand, they should strengthen cooperation each other instead of vicious competition. At the same time, this paper discusses the marketing management of intermediary business of commercial banks, especially adopts the theory of relation marketing and analyses the risk types of intermediary business, discusses the risk management including how to judge and control.