The Study Of Intermediate Business Of Our Country’s Commercial Banks

Over the years, the development and expansion of our country’s commercial banksmainly rely on their traditional deposit and lending business, interest income is the mainsource of their profit. However, this model depends on certain financial and economicenvironment, and this model is extensive. The current business environment thatcommercial banks face has undergone profound changes, for example, financialdisintermediation caused by the financing of securitization and the growth of ourcountry’s non-financial institutions, the progress of market-oriented interest rate reform,the strengthening of financial supervision. They all bring great challenges to thetraditional business of our commercial banks. The deposit and loan decrease, and thespread income is shrinking. If China’s commercial banks still depend on the traditionalbusiness simply, they will be difficult to achieve sustainable development. Therefore,commercial banks must change the model of operation, and develop new profit growthpoint. The development of intermediate business is an inevitable choice for them.In the twelfth five-year plans，the government puts forward that our country willcontinue to establish and improve the multi-layered financial market system and speed upthe process of market-oriented interest rate reform. With the increase in the number ofnon-bank financial institutions and development, financial disintermediation ofcommercial banks will become more prominent, and market-oriented interest rate reformstep by step will be further intensified the competition between the commercial bankdeposit and lending business. China’s accession to the WTO five-year protection periodhas ended; the banking sector has been fully open to foreign banks. Foreign banks willenter Chinese market in the round and this will brings great threat to the development ofChina’s commercial banks. Facing fierce, in order to survive and develop, China’scommercial banks should change the current development model, develop intermediary business and make it to be the new profit point. How to develop intermediary businesses,and enhance the competitiveness and profitability of commercial banks of our countrybecome a problem of great practical significance and research value. Based on this, thisarticle analyses the historical background, development status and experience in thedevelopment of intermediary business of Western commercial banks, and then and thenspecifically investigates the background of the development of intermediary business ofour country’s commercial banks, development status and problems. Given the problemsin the process of developing the intermediary business, learning from the Westerncommercial banks in the process of developing the intermediary business and combinedwith the development of the situation of the specific financial and economic environmentand our country’s commercial banks, this article raises specific principles and strategies.The innovations of this article are as follows:1. This paper systematically summarizes and analyzes the background of thecommercial banks’ developing intermediary business.2. This paper adopts new metrological model to make an analysis on financialdisintermediation. The dependent variable is GDP and the dependent variable is loanbalance and credit balance. By comparing the different effects on the GDP of the loanbalance and credit balance in two different stages, this paper illustrates that the financialdisintermediation is existing.3. Given the problems in the process of developing the intermediary business,learning from the Western commercial banks in the process of developing theintermediary business and combined with the development of the situation of the specificfinancial and economic environment and our country’s commercial banks, this articleraises specific principles and strategies.