Research On The Intermediary Business Of Commercial Banks And Its Pricing

In the international financial history, the intermediary business of commercial banks has existed for more than 160 years. After Basel Agreement came into effect, the intermediary business developed rapidly and became more and more important in modern commercial banks' business. In our country, the rapidly developing financial market and the dovish monetary policy of the central bank forced commercial banks to seek new sources of profits. Furthermore, after joining WTO, according to the promise, our country gradually opened domestic financial market. Thus commercial banks had to compete with foreign banks straightly and faced greater challenges. In this situation, commercial banks must strengthen their intermediary business. In the past years, domestic commercial banks had no right to price the intermediary business, which made the research on its pricing system far from being sufficient. Now, commercial banks have the right of charging for their services, which is vested by the Provisional Regulation for Charging Standards of Service by Commercial Banks. Thus the pricing of the intermediary business, which relates to the supply, becomes more and more important. So the research on the intermediary business and its pricing system is significant.In this thesis, the conception of the intermediary business is given, and its types, its characters and its risk are also discussed. Reasons for the rapid development of the intermediary business and its trend are analyzed. Based on statistical data and logic methods, the comparison between the domestic and the international intermediary business is presented. In reference to micro-economical theory and riskneutral pricing principle, theoretical analysis and case-studies for the pricing system of the intermediary business is presented by the use of cost-plus method and option pricing model. At the end of this thesis, advices on how to promote the intermediary business are given.This thesis is organized as follows:Chapter one: A survey of the intermediary business. In this chapter, the conception, the types, the nature and the risk of the intermediary business are introduced.Chapter two: Research on the development of the intermediary business. In this chapter, the reason for the rapid development of the intermediary business and its trend is analyzed. By the Comparison between the domestic and the international intermediary business, the conclusion that there are gaps between them is reached.Chapter three: Theoretical studies and demonstration analysis of the intermediary business. This part is the core of the thesis. Based on the analysis of the market structure of the intermediary business and traits of its supply and demand, the pricing system of the intermediary business, including the pricing strategy, the pricing method and the pricing model, is studied and some cases are selected to do demonstration analysis.Chapter four: Suggestion. In this part, advices on how to promote the intermediary business and how to enact its pricing system are given.