Study On The Optimization Of P Bank Financial Intermediary Function

With the constant perfection of financial system and the continuous deepening of financial innovation in our country, both the demanders and suppliers of funds need professional and diversified financial intermediary services. On one hand, the demanders for funds come into contact with increasing debt and equity financing products, and they hope to draw support from valuable and targeted services to help manage the demand for investment and financing, also provide systematic solution. Scale, efficiency, cost and risk are often the most-concerned elements when the clients select services. According to different conditions and requirements of the clients, synthetical balancing these elements and providing best solutions are the key factors to judge whether the financial intermediation possess stronger competitiveness and adapt to future market’s trend of development. On the other hand, current regulation and controlling of the real estate industry and sustained downturn of stock market in China, huge amount of folk funds lack investing way. Massive investors desire to seek high-returned and relatively safe investment projects and products in market, but due to the inferiority of information, as well as insufficient professional knowledge of a number of financial products, the outlets of disengaged funds are comparatively simplex and obstructed, while it’s hard for the investors to look for risk and return matched projects, so they deposit most funds in banks. Therefore, it’s an urgent and realistic problem for financial intermediation to optimize its function to adapt to new changes in our financial markets, also to satisfy gigantic and diversified demands for investment and financing. On the basis of uthoritative data published by China Security Regulatory Commission, the sum of public offering funds in our country had just broken through one thousand up to January12th,2012, while the quantity of funds had been over8,000by the end of1980s in the USA, whose scale of funds management stayed on the top of the world. Therefore, it’s one of the goals for financial intermediation to widen the ways of investment for the suppliers of funds.We note that due to the hysteretic development of financial innovation and financial practice, folk finance, the kind of spontaneous financial activities which is free to existing laws and regulations, is constantly warming. Folk finance includes private lending, petty loan, illegal private bank, pawnshop and so on. Actually, under the background of serious backwardness and slow-moving development of mainstreamed financial intermediation, these folk financial activities are not all illegal; they are the natural products for satisfying the demands of market, also the epitomes of financial intermediation’s deficiency in China. An authoritative report of Central Bank shows the scale of the folk financing in China is nearly a trillion, about6%of total loans. It seems that to a large extent, the folk finance makes up the blank space of mainstreamed financial institutions and products. However, the fact reveals that these functions which should be fulfilled by financial intermediations like banks and securities traders, are now replaced by folk finance, a short slab of financial intermediary services in our country. Gratifyingly, our financial authorities have realized above problems, and consecutively introduced a variety of loosening policies and encouraging innovative measures, to comply with the historical background of economic structure’s transformation in China. In the12th five-year plan of finance, a number of policies were clearly put forward, as breaking the forbidden zone, supporting banks, securities traders and other financial institutions to enrich their products, innovation services and so on.For the bank itself, financial intermediary services are easy to produce high added-value and bring superior intermediate business income, which is fatal to form hard-to-copied core-competitiveness of financial intermediation. There is a large gap between the proportion of intermediate business income in Chinese and foreign banks. The proportion of non-interest income in the US banking basically remained in40%in2000s-2010s, while domestic banking about20%. In recent years, P Bank transformed from a traditional funds’intermediation to a comprehensive financial intermediation, from simplex banking to multi-sectored operating, and explored diversified innovation business. What’s more, P Bank strengthened cooperation with financial institutions as the fund companies, the trust companies and the securities companies, which is a typical and successful example of financial intermediation. Based on this point, the investigated subject of this essay is the optimization and improvement of P Bank financial intermediary function, a reference of perfection, promotion and optimization for other banks’ financial intermediary function.