Under the pressure of financial disintermediation and interest rate liberalization, the competition among commercial banks become more and more fierce. At this time, interbank business shows its advantage of avoiding supervision. It helps banks to expand and make profit. But interbank business also has many side effects. This paper analyzes the reason why interbank business developed so quickly, how to avoid supervision, the side effects it may bring, the rules and regulations that are made to supervise the business and the forecast of the future development. |