Financial Disintermediation And Profit Model Transformation Of China’s Commercial Banks

In the 1960 s, the financial disintermediation phenomenon first appeared in the United States. The emergence of this phenomenon not only greatly challenges the traditional profit model of commercial banks, but also provides great opportunities for the development of them. With the gradual improvement of domestic financial system,the development level of financial markets is gradually improving, and the international financial market integration is also continually accelerating. Given the background,financial disintermediation came to China in the mid-1990 s for the first time, and has been deepening from then on. Financial disintermediation brought great pressure to the commercial bank management of our country, such as the impact on the traditional deposit and lending business and the traditional profit model. However, at the same time,financial disintermediation also provided opportunities to the development of commercial banks and financial innovation in banking institutions.In the above context, this paper mainly discusses the existing problems of Chinese commercial banks’ traditional profit model. Taking a local commercial bank in ShanDong Province as the analysis object, this paper analyzes the data and developing trend of traditional deposit and lending business, investigates the transformation of western commercial banks’ profit model in 1980 s, and determines the development of intermediary business as the transformation direction of Chinese commercial banks’ profit model. This article also analyzes the development of intermediary business in recent years, finds out existing problems through a series of data and charts, and finally puts forward the corresponding strategies.This paper investigates the issues of profit model selection of Chinese commercial banks against the background of financial disintermediation by means of both theoretical analysis and practical analysis. Besides, this paper also employs a combination of comparative analysis approach and trend analysis method. On the one hand, this paper compares the commercial banks’ operating environment and the influence of financial disintermediation based on contextual data; on the other hand, this paper summarizes problems in the development of commercial bank business through trend analysis method.This paper searches for the direction of the profit model transformation in the perspective of commercial banks and analyzes the individual lines of intermediary business to propose specific solutions for the problems existing in each of the lines. This paper realizes an innovation in terms of the research angle based on a large amount of previous qualitative research. Finally, relevant recommendations are given to confront the financial disintermediation: Chinese commercial banks should actively respond to financial disintermediation rather than escape from it; they should develop intermediary business energetically, and adjust strategies actively according to corresponding problems.