A Study On Innovation And Development Of Commercial Banks' Intermediate Business In China

With the globalization of finance and Integration of economy, especially the development of international capital market and the decrease of international interest rate, innovation of intermediate business has become a very important development strategy of international banks in 21 century. Now China has joined the world trade organization, commercial banks of China have to participate more severe competition and face more challenges in the international financial market. For a long time, most of the profits of Chinese banks come from interest spread, but those of banks in western countries come from intermediate business. In the past few years, innovation products of intermediate business have become new sources of profits. More and more Chinese banks pay attention to the innovation of it. Although the innovation of Chinese banks' intermediate business developed very fast in the past few years, but compared to those of commercial banks in western developed countries, they still fall behind concerning the variety of business, the function mechanism and the contribution to banks. To meet the development trend of international banking and to enhance the competitiveness of commercial banks, constituting the innovation strategy of Chinese commercial banks' intermediate business has become a necessary choice of Chinese commercial banks. It is helpful to optimize the profit structure of Chinese commercial banks, improve the profits, decrease the management risks, optimize the resource distribution and improve the competitiveness of banks eventually.The author chooses the intermediate business of commercial banks as object, starts with the innovation theory of western finance, studies the motivation and effects, and with the comparison, the author looks for the diffidence of intermediate business between the banks of China and those of western countries, the reasons for the difference and the problems which appear during the innovation of Chinese commercial banks' intermediate business. Base on this, the author suggests that to advance the development of intermediate business, Chinese commercial banks should establish financial holding companies, pay attention to human resource, make the right strategies of product pricing and brand positioning, focus on advantageous business and strengthen the risk management.