The Middle Business Of Bank Profit-earning Model Discuss

With the booming of the economy and the deepening of the financial reform, the bank's functions have greatly changed at the requirements of the society. While the bank industry itself is facing the era of little profit. Consequently, much attention were paid to M.B.B.(the middle business of bank), which is less costly, less risky and high profitable. The M.B.B.(the middle business of bank), along with the Debt service and the Asset service, have made up of the three pillar industries of the modern commercial bank, which becomes a major income of the commercial banks in developed countries. However, the development of M.B.B. in China is not satisfactory. Therefore, how to improve the operation mode of the M.B.B. of the Chinese commercialbanks and make it into a real source for its profit? This is a question that we are facing and should be better dealt with.This article analyzed some problems in developing M.B.B. at present, from a point of view of getting profit. The article made comparison between domestic banks and foreign banks, and pointed out that the market of domestic M.B.B. is underdeveloped, the business mode is lag behind and M.B.B. is not profit-earning. Then, the article briefly analyzed some major factors that limited the development of the M.B.B. of the domestic commercial banks. To solve the profit-earning problem of the banks, the article proposed several business modes, as "customer development mode' "large-scale transaction mode' "switchboard profit model' "product pyramid model' "experience curve model". Together with the real practice in the bank industry, the article analyzed the characteristics of these modes respectively. Then, the article gives a case "Fund Management System in Sichuanbranch, Bank of China and Sichuan branch, Chinatelecom ", to illustrate how to put the "customer development mode" to practice in Bank industry. Moreover, the article put forward "one-up IT mode" from the point view of "science and technology is the productivity". To explain the mode, the article analyzed a M.B.B technology platform in a bank and proposed that "advanced technology mode" is the way to success. The article concluded that developing M.B.B. and getting continuous and stable profit would be the future for the bank industry, and that various advanced and flexible modes, which is profitable, is the key to occupy the market. At last, this article reminded us to be aware of some problems in developing the M.B.B, e.g. "risk control of M.B.B.' "how to develop M.B.B in western China".