Research On The Development Of Intermediary Business Of State - Owned Commercial Banks In China

Since joined the WTO in2001, China has committed that the domestic financialmarket will be fully open. Then, foreign banks continue to enter China to domesticcommercial banks has brought unprecedented pressure and threats, domesticcommercial banks are facing huge competition.Continue to consolidate and take advantage of the traditional banking business,China’s domestic commercial banks should actively carry out financial innovation andlearn from the banks of western developed countries, no longer just rely on depositand loan spreads to sustain its growth any more. China’s domestic commercial banksshould improve their overall competitiveness, enhance their core competitiveness andthe ability to resist the competition of foreign banks, continue to develop new serviceson the basis of the original business, explore financial innovation to meet the diverseneeds of customers. Especially state-owned commercial banks, the leading domesticcommercial banks, with rich resources, a variety of customer needs and a hugeamount of money, should pay attention to the development of financial innovationbusiness in order to improve return on assets.Thanks to the great development of the capital market, the domestic state-ownedcommercial banks speed up the strategic restructuring and integration of all-roundmanagement of pace. In recent years, the state-owned commercial banks pay moreattention to intermediary business. Their intermediate business income increased yearby year, grow more and more fast, and the proportion of total operating income is alsoincreasing. Due to the lack of laws and regulations, strictly separate managementsystem and poor credit environment, there are still some problems, such as laggingunderstanding, imperfect management mechanism, not standardized competition,confused development, lack of innovation, low technical content, irrational structure,lack of personnel and other issues.Commercial banks in developed western countries started innovation muchearlier, their intermediate business continue to improve so that their profits havemainly relied on intermediate business. With the speed up of the market interest ratesprocess, the shrink of deposit and lending, the growth momentum, the living space ofthe state-owned commercial banks and market share continue to be diverted today, weshould conscientiously sum up the successful experience of foreign countries,carefully reflect on shortcomings in the past, to make up for the lack of intermediatebusiness.This paper firstly describes some basic theory to introduce intermediate business,then introduces the most representative countries-US commercial banksdevelopment, through in-depth analysis of the current situation of the state-ownedcommercial banks intermediate business development, points out the problems ofChinese state-owned commercial banks under the new situation. At the same time,selects typical state-owned commercial banks-Commercial Bank of China foranalysis, given its current state of development, we use the method of SWOT analysisand empirical analysis. According to the analysis of the situation at home and abroad,we put forward some policy recommendations for China’s national conditions to improve the status quo, including accelerating the improvement of intermediatebusiness-related laws and regulations, further deepening the financial reform,continuing to push the process of market-oriented reform of interest rates, changingthe traditional banking business concepts, subdividing customer resources,accelerating the hardware construction.We believe that through the efforts of state-owned commercial banks, they willbe able to overcome various unfavorable factors, continue to play traditionaladvantages, culture for their own core competitiveness, enhance their overall strength.Our state-owned commercial banks will be in a leading place not only the worldchampion but also in the ranks of the banking industry.