Strategic Development Of Intermediary Business Of Chinese City Commercial Banks

With finance being globally integrated and liberalized after 1980s, the intermediary business of commercial banks in western countries has a rapid development. It rapidly expanding on both scale and scope, the ratio of the profit from the intermediary business is increasing- among- the total profit. By contrast, the intermediary business is relatively late in China's commercial banks. In recent years, with the reform of Chinese financial system and the development of its economy, Chinese commercial banks have paid more attention to the intermediary business, because they begin to realize its important role. They try to provide their customers with new services through continuous financial innovation. As a result, their intermediary business has improved a lot. However, compared with that of the banks of western countries, the intermediary business of Chinese commercial banks is far behind in terms of both quality and quantity. As the integration of financial market of the world deepens and China's financial market fully-open to foreign counties after China's entry in WTO, our banks would focus on the intermediary businesses, which is certain claim of business structure adjustment. They would make the intermediary businesses be the main approach of profit increasing, to develop intermediary business is the need to counter risks and to enhance managerial capability. Our commercial banks should enhance their own competitive edge and break away from the problem by drawing lessons from commercial banks of developed countries on their experience of developing the intermediary business, studying the development strategy and working hard to push for the launch of the intermediary business.This study selects the intermediary business of city Commercial bank as study object, analyzing the developing of intermediary business of city Commercial bank with systemic viewpoint and scientific managing method and tool systematically. The main purpose is, through the analysis and the appraisal of the key aspects which affecting the intermediary business of city Commercial bank to construct developing strategy of intermediary business of city Commercial bank in China based on the SWOT analysis, and proposed the development and innovation of city Commercial bank in China.This paper is divided into six chapters according to the logical relationship. The first Chapter mainly introduces the background, original intention and main purpose of the subject and total claw, general theories foundation and etc. Chapter 2 focuses on the general introduction of intermediary business of city commercial banks. This chapter clearly defines the intermediary business and its characters. Followed by introduction of its developing tendency and present condition, this chapter gives a thought-provoking analysis of the existing problems of intermediary business in our city commercial banks. Chapter 3 analyzes the external environment for managing, including and internal environment. External environment includes general environment, industrial environment and competition environment. Industrial environment is made the main analysis through Michael Porter model. According to this, the key factors and its significance are evaluated through EFE enjoined in the example of xi'an city commercial bank. Chapter 4 analyzes the internal environment for managing. Internal environment includes financial, organization, information, innovation and human resource and ability. According to this, the key factors and its significance are evaluated through IFE enjoined in the example of xi'an city commercial bank. Based on the analysis and evaluation in the former two chapters, Chapter 5 made the whole, competition and function strategy of developing intermediary business , draw the developing objective, made strategic plan pointedly which analyze and evaluate using QSPM, Particularly variation market competition strategy. In the end of this paper, it offers several recommendations to develop the intermediary business based on above analysis.We get important conclusions and suggestions as following:1. Intermediary business has been one of the important businesses of city commercial bank in China. The debut of the temporary provision of commercial bank's intermediary business and the law of commercial bank, marking the external environment of intermediary business, providing opportunity to commercial bank to developing its intermediary business. At the same time, the entry of foreign bank make city commercial bank facing with the challenge of inside and outside bank's furious competition. Although city Commercial bank has certain development superiority in the policy, the market, the customer resources and mesh point and so on. But it also has disadvantageous restriction factors in idea, organizational structure and operational mechanism.2. By using QSPM to appraise competition strategy of developing the intermediary business of commercial bank in China, it indicates that the variation market competition strategy is the best choice to develop our intermediary business. The city Commercial bank must provide the distinctive characteristic product and service to attract the target customers.3. Based on qualitative and quantitative analysis, we provide suggestions to accelerate intermediary business's development from the point of view of enterprise itself and government. On the one hand, enterprise itself must transform the idea, enhance the understanding degree of intermediary business; on the other hand it must locate accurately, promote high quality development. The government should not only strengthen the risk consciousness and the supervision, but also should standard the charge of intermediary business.