Research On Intermediary Business Innovation And Risk Prevention Of Commercial Banks In China

Since the reform of finance system in our country, commercial Banks in Chinagot rapid development, formed the state-owned commercial Banks, joint-stockcommercial Banks, city commercial Banks and foreign Banks competition coexist ofmulti-level system of commercial bank. As securities, insurance and other non-bankfinancial institutions continue to grow, the traditional sources of capital and capitaluses of commercial bank come under attack, the survival and development ofcommercial Banks is facing severe challenges. With increasing competition infinancial markets, the intermediate business becoming a new profit growth point ofcommercial Banks as its high profit, low cost and low risk. To develop intermediarybusiness vigorously, expand business areas actively, improve the comprehensiveservice ability and the market competition strength, are the inevitable choice of ourcommercial Banks to approach challenges and achieve development.In recent years, a large number of intermediate business innovation products areproduced in abundance. But intermediate business also brings the vagaries, variousforms, and different degree of risk to commercial Banks. Intermediary business riskis relatively low, but it will cause an irreparable loss to commercial Banks iftranslates into the real risk. Intermediary business risk prevention and riskmanagement has become a very serious realistic problem.I devoted to study the present situation, mechanism and risk prevention of ourintermediary business innovation. First of all, through the comparative study on thedevelopment of domestic and foreign commercial bank intermediary business, pointsout there is a big gap between our commercial Banks and western commercial Banks,then through to our intermediary business product innovation mechanism of in-depthresearch, pointed out the restriction factors of intermediate business innovation;Finally, proposed the proposal of intermediary business.