On The Regulation Of Intermediary Services

Background and significance of selecting such a theme.With the globalization and integration of economy, the financial environment is becoming more and more favorable. In addition, with the development of non-bank financial institutions, the competition among transactions of every financial institution becomes more drastic. Under such new circumstances, in order to survive and develop, commercial banks, as profit-pursuing institutions, are bound to adjust actively their ways and strategies of operations. As one of the most important creations during 1980s, Intermediary Business (IB) of banks has gradually turned into a new focus. In recent years, many kinds of IB have appeared, such as swap, forward rate agreement and paper-issuing facility, etc. All of them are in the category of financial innovation. Varieties of IB bring to commercial banks considerable profits as well as operational risks. Hence, we should supervise the IB.With China's entry into WTO, finance industry is about to open comprehensively. However, at present we are comparatively weak in the theory and practice of supervising IB. If the supervision over IB cannot keep pace with the development, the healthy development of our commercial banks' IB, even our financial safety and economic stability will be threatened.In such a new situation, how to consolidate and perfect the supervision over IB of banks is a pressing task we must face. Therefore, to study systematically the supervision over IB is significant. This theme is selected on the basis of such a purpose.2. Basic train of thought, and main contentsThis thesis begins with the definition of IB, then through analyzing the characteristics and risks of IB, and combining international banks' practical experience in the supervision. The thesis discussed the supervision over IB of Chinese commercial banks. Moreover, the thesis puts forward some relative measures to build the supervisory system of IB of our commercial banks, and finally to realize our aims.The thesis includes three chapters. The first chapter is "the Survey of the IB and Supervision". Firstly, this chapter begins with the definition of IB, and then to differentiate between IB and Off-Balance Sheet Activities (OBS). IB has some characteristics and these characteristics determine IB has some micro and macro risks. As the development of finance in China is in low level, these risks appear some distinguishing features. In order to control these risks, we must supervise the IB. The second chapter is "several Principles of Supervision of international banking and some Enlightenment". At the beginning of this chapter some principles of supervision are analyzed. The first is the principle of capital adequacy rate. The second is transparency. The third is inter-control. The fourth is cooperation with other supervisory institutions. Through these principles we can find some significant enlightenment.The third chapter is "the Supervision over IB in China". This chapter mainly talks about the present conditions of supervision over IB in China. The second part of the chapter is to analyze the existing problems in supervision over IB. According to these problems, some suggestions are given at the end of this chapter. 3. The angle of research and innovation(A) This thesis adopts information economics and game theory to analyze the necessity of supervision over IB of commercial banks, which provide theory basis for supervision over IB.(B) Comparing with developed countries, the risk is different. This thesis not only analyzes common risks of IB, but also pays more attention to problems and risks of IB, which is one of the creations of this thesis. (C) In terms of establishing and completing supervisory system of IB of our commercial banks, this thesis brings up some suggestions. Such suggestions and measures are favor to resolve present problems in supervision and suit the future development of IB of our commercial banks. They also represent some new ideas of bank supervision, which conform to the trend of d...