The Intermediate Business Of Commercial Banks In China Risk Prevention

As our country has joined WTO, the commercial banks of China are facing the keen competition from foreign banks. The intermediate business has been the focus that is fought for fiercely. At the same time, however, it is for a long time that the commercial banks of China have been devoted to assets and liabilities business. Intermediate business is a 'bottleneck' of the development of Chinese commercial banks. So the development of intermediate business is essential to commercial banks.Anyway the development of intermediate business is not the one without cost, the intermediate business are risky. It has credit risk, market risk, operation risk, liquidity risk and legal risk just as assets and liabilities business but its risks are not the same in nature as the other two.Facing the situation commercial banks in our country should learn from those in western countries, they should control and regulate risks in the point of view of internal and external of commercial banks.From internal point of view, commercial banks should perfect the financial system, business disposal, risk alert system. On the other hand, they are devoted to the construction of internal audition and reasonable fee-collection standard.From external point of view, regulation organization should play the role of regulator in the fields of information disclosure of intermediate business, regulation of capital adequacy ratio, construction of payment and clearing system. The regulation organization and peer trade organization will exert their functions respectively.Above all, commercial banks of China should control risks of intermediate business at the same time of development of it. And only by this method intermediate business is able to go ahead in a healthy and stable way.