Research On The Impact Of Financial Disintermediation On Commercial Bank

Financial disintermediation is a phenomenon that money directly circulate and turnover between capital demanders and capital suppliers without the intermediation of commercial banks. American financial disintermediation appeared in 1996 for the first time, China experienced this phenomenon in the last decade of the twentieth century. At present, the reform of China’s financial system continues to push forward. The establishment of securities market and the rapid development of internet financial constantly weaken the indirect financing of commercial banks. The micro individual decisions of investment policy and finance policy have taken place great changes. Residents have begun to put more money to invest in stocks, bonds and other financial instruments, rather than as in the past the single remaining funds in the bank. In addition, Demanders of funds begin to look to the market of direct financing and choose more direct means of financing through stocks, bonds, etc. to get the money they need. The shift leads to atrophy of the commercial bank business including deposits and loans and form a huge challenge for commercial banks.In this paper, on the basis of relevant research results, based on China’s national condition, the author firstly measures the occurrence and development of financial disintermediation in our country with four sets of specific data and analyzes the causes of financial disintermediation. Then the author makes detailed analysis of financial disintermediation’s influence on commercial bank management from the aspects of traditional business、profitability、management risk and business pattern, and has carried on the empirical analysis. Finally, the author put forward countermeasures and suggestions to commercial banks to deal with financial disintermediation with great hope that China’s Commercial Banks can better meet the challenges and seize the opportunities, withstand the baptism of the financial disintermediation to make greater contribution for our country’s economic construction.