Study On Intermediary Business Of Commercial Banks In China

Along with the globalization, liberalization and information tendency of finance,market competition will be much more intense. Interest profit of commercial banks isdecreasing. By reason of smaller risk, lower cost and higher income, intermediary businesscan help increase commercial banks’ profit very much. Development of intermediarybusiness is now a tendency of modern commercial banks. Intermediary business isoff-balance-sheet activities．Profit from intermediary business is non interest income ofcommercial banks．Through intermediary business, commercial banks can guarantee fulltypes of financial services．This article starts with the concept of the intermediary business of the commercialbank and its characteristics will be indicated, then the brief introduction of the westernintermediary business’s development will also be mentioned. In the second part, the writerwill post the present situation of the Chinese intermediary business，indicate6problemsand the analysis on the background of these problems will be given. Based on theexperience of the western intermediary business’s development, this paper will offer5measures and make an analysis of the risk management which comes from the measures.