China Construction Bank, The Intermediary Business Innovative Research

If safety is the necessary requirement for the survival of a bank, then profit is theguarantee for its development. While the main profits of the Chinese banks are generated by themargin between the interest rates of loan and of deposit, yet for the foreign banks, the main profitsderive from other sources, that is, the fee-collecting financial services.References show that 40%, even two third of the foreign banks' profits are obtained byproviding the fee-collecting financial services. But the fee-collecting financial services are stillelementary in China and the profit proportion of the fee-collecting financial services is rather low,as low as between 2% and 8%. In the impetuous competition among the banks, the fee-collectingfinancial service is the important way to generate the profit and, as the same time, bear lower risks.This paper is trying to illustrate the importance and the direction of the development ofthe fee-collecting financial services in the future banking operation and to point out that theinnovation of the fee-collecting financial service is the only way for the Chinese banks to face thedead-line of the financial operation openness in China as prescribed in WTO and relevantchallenges from foreign banks.According to the development of the current banking operations, there is a newincreasing point appearing in the fee-collecting financial services, besides the traditional trustbusiness. This paper discusses the details of the investment banking operations and proposes anoperational model of the fee-collecting financial services in order to make the most out of thelimited funds in the bank.