Intermediary Business Development Of China's Urban Commercial Banks

With the global economy integration,countries in the world have paid more attention to the huge Chinese capital markets. China’s economy is to accept challenges from all sides. The banking is subject to the economic development of the most influential industry, and fluctuation of banking reflects the economic situation of country. In recent years, the rapid development of China’s banking has led to the fierce industry competition.The continued expansion of foreign banks makes the competition fervorization. With hidden risks, commercial banks have relied on deposit and lending rates. The loan demand brough by the economic development makes banks maintain high returns.With interest rates liberalization, LDRD is reducing and deposit interest rate is rising.The decline in profitability forces the commercial banks carry out business transformation. Intermediary business has become the breakthrough of commercial banks to maintain profitability.As supplement of banking, city commercial banks mainly for enterprises and residents in the region to provide financial services. After years of development, asset size and operating efficiency has been greatly improved. Accustoming extensive growth, city commercial banks have to change the mode of operation in the interest rate liberalization. Innovating intermediary business and improving non-interest income,is key point of the development of city commercial banks.In competition with state-owned banks and joint-stock banks, city commercial banks are quite weak.The development of intermediary business in many aspects are subject to constraints. This paper aims to analyze the characteristics of city commercial banks and intermediary business development background, current status, issues and trends,and identify the advantages,weaknesses, opportunities and challenges,and analyze influencing factors, then promote measures.