On The Risk Of The Intermediary Business And Its Legal Control

Since the beginning of 1980's, with the development of capital market and increase of financial innovations, the revenue of traditional business has been accounting for less of the total business revenues of commercial banks, the interest spread of deposit and credit has been narrowing and customers' demand of business has been becoming more complicated, which have made intermediary business a natural choice for the development of banks. Meanwhile, with China's entry into WTO, the gradual deregulation of financial institutions of foreign capital into China's market and the ever-increasing competition, it is natural that intermediary business should be expanded to guarantee the development of commercial banks.To develop the intermediary business, on one hand we have to refresh our knowledge and promote innovation, on the other hand, we should take the risks brought about by the intermediary business. Because of the lack of experience, people do not pay much attention to it.This paper can be divided into four parts:The first part is on the status quo of the development of intermediary business. In this part, the author expounds on the intermediary business from the perspective of definition, scope, nature, feature and type. This part serves as the theoretical foundation of the latter part.In part two, the author conducts an analysis on the risks of intermediary business. Because the public do not pay much attention to the intermediary business, the author wants to enhance the awareness of risks. The risks brought by the intermediary business are different from those brought about by the traditional business. The former risks are not easily to be discovered, but they have profound impact on the operation of the commercial banking.