The Research On Intermediary Business Innovation Of Commercial Bank In China

Intermediary business, different from the traditional assets and liabilities business of banks, is a kind of economic activities that commercial banks in the business process as a "middle-man", provide services for transaction parties, such as receipt and payment processing for customers, agents, consulting, or other commissioned matters, meanwhile the banks will take the handling charge of the transaction parties. The main features of the intermediary business is commercial bank carries out banking business without or with little use of its own funds, and the bank is involved only as a intermediary, compared with the traditional business, the risk is much smaller. With the continuous development of modern financial industry, as well as the continuous deepening of economic globalization, the traditional bank's assets business and liabilities of business can no longer fully meet the huge demand for modern industrial and commercial development. For the purpose of adapting to the changing economic environment and also strengthening its competitiveness, the modern commercial banks must require great efforts to develop a low-risk, high-returns intermediary business, as its major profit growth point, and logically one of the core business of commercial banks.In recent years, Chinese commercial banks have increasingly recognized the significance of the intermediary business, and started to pay attention to the development of intermediary business. By searching for the new service, developing the new products, expanding the business, the intermediary business has been reached certain development. But compared with the development of modern financial sector and the development of intermediary business of commercial banks in western developed countries, it is much inadequate. Either the number of the products and the way of service or the introduction of talents and the use of talents, there is a big gap, especially the innovation of intermediate business.2008 was an extraordinary year, the outbreak of the financial tsunami makes a huge blow to the global financial industry, the banking industry as the core of the financial industry is the first to suffer and is affected particularly. In this case, what should Chinese commercial banks do, whether the occurrence of the financial tsunami is an opportunity or challenge to the future development of China's commercial banks, we have to consider the problems. In my opinion, the financial crisis on the development of China's commercial banks is a golden opportunity, compared with the impact on the commercial banks in developed countries, the effect Chinese commercial banks suffered in the crisis is not large. Chinese commercial banks should use this as an opportunity to make every effort to include those personnel who have professional banking knowledge and advanced management experience. With this opportunity, we should develop the intermediary business which can bring high returns, innovate the products of intermediary business and the way of service actively, change the traditional business philosophy, tap the potential customers, enhance their competitiveness, and finally make themselves among the forest of large international banks.This paper takes financial innovation theory and the theory of intermediary business of commercial banks as the foundation, and by comparing the current situation of the development of intermediary business between Chinese commercial bank and Western commercial bank, found the factors that effect the development and innovation of intermediary business. Meanwhile, in order to further speed up the development of the intermediary business of commercial banks in China, proposing specific strategies to enhance the market competitiveness of commercial banks in our country.Structurally, this paper is divided into five parts:The first part is an introduction, describes the significance of this study and have a sum of the research done by the foreign scholars on financial innovation and intermediary business of commercial banks. The second part is the general overview of financial innovation and the intermediary business of commercial Bank. In the first place, the meaning of the "financial innovation" understood by domestic and foreign scholars is introduced, and on this basis, also is summarized; and also the characteristics of financial innovation and the general theory of financial innovation are described; In the second place, describes about the basic concepts of intermediary business, in accordance with the "Provisional Regulations on Intermediary Business of Commercial Banks" developed by People's Bank of China, divides intermediate business into seven categories, meanwhile illustrates the need for innovation of intermediary business of commercial banks. Firstly, it helps to improve economic efficiency of commercial banks to meet the needs of the development of banks; secondly, it helps to open up new business areas and the types of innovative products; and thirdly, it helps to reduce and spread risks of banks; Fourthly, it helps to improve the market competitiveness of commercial banks. Finally, the description of the relationship between the financial innovation, and pointed out both are interrelated, relay on each other, complement each other, and are indispensable.The third part introduces the current situation of the development of intermediary business in Chinese commercial banks and the Western developped counteries' commercial banks, and on this basic have a comparative analysis of the two, and finds that there is quite big gap, which mainly shows on the small business, the slow and uneven development, and differences in the concept of service. These are precisely the performance of lack of competitiveness of Chinese commercial banks.The fourth part is developed on the basis of the second part, then with the comparison of the two, finds out the constraints that restrict the innovation of intermediary business of Chinese commercial Banks, including both of the two aspects:internal problems and external problems existing in the commercial banks.The fifth part, based on the previous analysis, proposed the specific strategies for the innovation of intermediary business of Chinese commercial banks. It mainly analyses from two aspects:product category innovation of the intermediary business and the management innovation of intermediary business:on the product category innovation of intermediary business mainly elaborates from the following five specific aspects:1. combined with the world trend of industrial development, develop financial leasing business; 2. with the combination of the intermediary business and modern communications technology, develop Internet banking system; 3. for different needs for different customers, make efforts to promote the personal financial services; 4. affected by the financial crisis, cash management business has become the focus of future development of commercial banks; 5.subsume the modern financial derivative products into the innovation system, and make a selective development of financial derivatives. About the management innovation of intermediary business, mainly describes in the following three aspects:1. shift gradually from the separation of management to the mixed; 2. enhance the internal controls of commercial banks to provide a strong guarantee for the intermediary business innovation; 3.strengthen financial regulation to prevent the financial risk of the intermediary business innovation. This section is the focus of this paper.