| On November 15th, 1999, the bilateral agreement on China's entry into the World Trade Organization (WTO) was signed between China and the United States. Thus, China has made great progress in the process of the WTO negotiation. After China's entry into WTO, according to the Financial Service Agreement and The Total Agreement on Service and Trade, China makes the promise of market entrance and citizen treatment obligation to other countries. When foreign banks get into China, our domestic banks will have more opportunities and face more competitions. How China's banks improve the market competitive ability to adapt to the new situation of bank industry becomes more and more important in the field of bank's operation and management.Foreign banks' strong capital, high quality of assets and advanced management experience exert heavy pressure on China's commercial banks, but the hottest competition exists in the field of Intermediary Business. Intermediary Business is one of the three major businesses of commercial banks. Its cost is very low and the bank can make great profit. Foreign banks attach much importance to the development of Intermediary Business, so after a long time's development, the operation and management experience of Intermediary Business becomes mature. The income from Intermediary Business increases every year. In recent years, the trend of mixed operation of different financial businesses becomes more and more popular. Intermediary Business has developed a lot, and it becomes an important income source besides asset and liability business. The management pattern of China's commercial banks is deposit-and-loan system for a long period of time. Most of the revenue of China's commercial banks comes from loan interest. Intermediary Business is only a minor business, lacks in the unified management sector and development plan. Intermediary Business is treated as a source to attract more customers and deposits. Many bank's Intermediary Businesses make no money at all. However, recent economic development makes the banks' operation environment change a lot. Due to competition the traditional income decreases and the risk increases. Meanwhile, economic development offers more opportunities for commercial banks to make profit. In modern society, people want commercial banks to offer not only deposit and loan services, but also other financial services. Intermediary Business has many sorts, and it can satisfy different enterprises' and different people's demands, so it has bright prospect. Furthermore, it is an important way to increase banks' income. Thus, in order to increase banks' income and compete with foreign banks, it is a must for the native banks to develop Intermediary Business.This article analyzes the impact on commercial banks after China's entry into WTO. Based on the analysis of the current development situation of Intermediary Business of domestic banks and foreign banks, the author tries to find out the problems and reasons in the development of Intermediary Business of China's commercial banks. The author believes it is significant for the bank to adopt the latest operation methods in order to face the competition and it is necessary for the government to create proper environment for the business innovation. This article is composed of four chapters.Chapter 1: This part analyzes the definition and classification of Intermediary Business, the importance of developing Intermediary Business to commercial banks, and the influence of WTO on China's Intermediary Business. Intermediary Business can be classified into six kinds. They are acting business, settlement business, guarantee business, service business, credit business and financial derivative business. Developing Intermediary Business can increase banks' income, promote the function change of commercial banks, and help banks use their resources more efficiently. After China enters WTO, Intermediary Business of domestic commercial banks will be influenced in many aspects, such as high quality customers, professional... |
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