Financial Disintermediation And Its Impact On Chinese Commercial Bank Study

In the background of global economic integration and financial development internationalization, our country’s financial system reform and capital market development is being carried forward, it comes to a phenomenon that the capital is financed directly between demanders and suppliers, instead of intervening financial intermediation, which is called financial disintermediation. This paper uses the theory and empirical, qualitative and quantitative methods to study the financial disintermediation and its impact on commercial banks. First of all, this paper combines abroad and domestic relevant theoretical research and the reality of our country to describe the financial disintermediation development situation in commercial banks and non-bank financial institutions, social financing scale and financing structure. In addition, it analyzes the fundamental causes of financial disintermediation in the view of financial deepening, investment concept change, information technology development and the policy support. Then comes to this paper’s studying result:On one side, financial disintermediation influences commercial banks’traditional business, profitability and risk management requirements. On the other side, it promotes commercial banks developing intermediary business, increasing the non-interest income, changing management mode and enhancing strength through capital market. After that, based on the perspective of traditional business it establishes the vector autoregressive model and impulse response function to verify the financial disintermediation’s influences on commercial banks and comes to some empirical research results:financial disintermediation will lead to a drop in the commercial banks’ deposit and loan in a long term. Finally, according to the theory and empirical analysis conclusion this paper puts forward some reasonable suggestions. To sum up, financial disintermediation is a double-edged sword, Chinese commercial banks should turn challenges into opportunities, speed up the reform and innovation, grasp all kinds of opportunities to achieve a qualitative leap.