Research On Development Situation And Contermeasures Of Intermediary Business Of Rural Credit Cooperatives

As deepening of China's financial reform, expansion of capital market, speeding up of interest rate liberalization process, and increasingly fierce competition among banks after joining WTO, the business strategy of China's commercial banks' profit from traditional deposit and loan spreads is facing serious challenges. Intermediary business is characterized as low cost, high yield, and low risk. The development of intermediary business plays an important role for commercial banks in improving services, consolidating the relationship between banks and enterprises, reducing the capital occupation, adjusting income structure and improving the profitability.In this context, the rural credit cooperatives must focus shift from traditional deposit and loan business to the intermediary business. This paper starts from basic concepts and classification of intermediary business. Analyze the current situation of intermediary business of China's commercial banks. Identify gaps between rural credit cooperatives and commercial banks, and analyze profound reasons combined with the development of rural credit cooperatives and the characteristics of their intermediary business. Meanwhile, sampled as Zhenhai Rural and Commercial Bank, this paper explains how rural credit cooperatives actively promote the intermediary business based on their own characteristics by analyzing current financial situation, and elaborates strategies and methods of the intermediary business from the management system, business innovation, marketing, risk prevention and control.This paper's innovation points are as follows:thoroughly study development characteristics of rural credit cooperatives compared with domestic commercial banks in the development of intermediary business. And propound that the intermediary business of rural credit cooperatives should focus on sustainable development, customer classification in business so as to consolidate the rural financial market, and establish "customer-centric" service concept in service positioning.