China's Small And Medium-sized Commercial Banks In The Context Of Financial Disintermediation Development Research, The Public And Business

The meaning of financial disintermediation is that lenders are dealing with borrowers directly rather than using a bank's balance sheet. In other words, the finance bypassed the Intermodal organization commercial banks, instead of using the way of direct financing.From 1960s, financial disintermediation has become a remarkable phenomenon. In China, it appeared in past decade. With the financial market developing in our country, financial disintermediation become a very important factor to influent the management tactic of commercial bank. So, to analyze the financial disintermediation's develop situation, features and what it make China commercial bank, especially med and small commercial bank face to challenge and chance, and presenting some practical suggestions based on the factual conditions of international and national commercial banks are significant for China commercial banks'development.According to the macro aspects, the living and developing environment of global financial industry has changed a lot. These changes show in the developing sequence, financial laws and regulations, financial technologies and so on. All these contribute to the external reasons of financial disintermediation. Meanwhile, according to the micro aspects, with the development of direct financing market, the changes in the financial conceptions of enterprises and residents, commercial banks must change their focus from big customers to middle and small customers. Commercial banks must change their operating ways and develop to a higher stage.The main reason of financial disintermediation is the customers find better products and service in the direct financial market or other financial institutions. So commercial banks must innovate. In this paper, firstly the author introduced the theoretical basis of financial disintermediation, then the development of the financial disintermediation. Secondly characteristics of China's financial disintermediation are revealed. In this base, under the trend the financial disintermediation, China's commercial banks, especially small and medium commercial banks are facing opportunities and challenges in Corporate Finance. In these challenges, China's small and medium commercial banks will be analyzed to adjust Corporate Finance strategy, and according to analysis of relevant cases of ChongQing Commercial Bank, propose a solution for its future development.