The Effect Of Intermediate Business On Risk Of Listed Commercial Banks In China Under The Background Of Interest Rate Liberalization

With the rapid development of China's financial markets and financial innovation,commercial Banks face more and more fierce market competition.Since the establishment of joint-stock Banks in China in the 1980s,the city commercial Banks established in the 1990s,China joined the World Trade Organization in 2001,China gradually eliminate restrictions on foreign Banks,today the Internet financial institutions appear in succession,commercial bank's status as a financial intermediary threatened,traditional loan business shrinking.With?Basel??and?the commercial bank capital management method(trial)?promulgated,the bank receives increasingly strict capital constraints.In addition,China has adopted policies to actively guide Banks to innovate products and services outside their main business,and accelerate the development of the intermediary business.Since 2001,commercial Banks that meet the requirements of the relevant conditions can apply for the intermediary business such as agency insurance and investment fund.According to?the commercial bank personal financing business management interim measures?issued in 2005 and?the electronic banking business management method?promulgated in 2006,the bank's business structure is improved.Banks is a high-risk industry,the bank profit by taking risks,risk management is a key factor in the success or failure of the bank,risk management has been the most important work of financial regulation.Wall Street crisis spread worldwide in 2007,the world economy drop into a depression,the world is turbulent,the economic development of China also subjected to impact of the financial crisis constantly.As a vital sector of the national economy,the external environment and internal needs of the banking industry have been accompanied by a creeping change in the financial crisis.At the same time in order to cooperate to continue to push forward of market-oriented interest rate reform in our country,China made the adjustment of economic structure and constantly groping for the economic development of our country's financial system,these changes for the financial industry in our country is a huge impact,not only requires the banking industry has a higher profitability,as well as innovation in risk prevention.In such a background,commercial Banks must transform the development mode,actively develop a variety of intermediary business,further enhance their profitability,as far as possible to reduce excessive dependence on main business income in order to reduce the management risk,to obtain long-term development.So at this stage,the important point of interest rate marketization was basically completed,the intermediary business,to study the effect of the interest rate marketization and the intermediate business on risk of Chinese listed Banks is great significant.Whether the bank's intermediary business has an impact on the risk of bank operations,and how it affects.The empirical results show that the spread of deposit and loan spreads will increase the operation risk of commercial Banks.An increase in the median business income would reduce the risk of operation of commercial Banks.Accordingly countermeasures and suggestions are given,based on the results of theoretical analysis and empirical analysis,we put forward the corresponding improvement countermeasures on how to reduce the operation risk of the commercial Banks in China under the background of market-based reform of interest rates.On the one hand,commercial Banks as the main body of the financial need to further broaden the scope of business,to develop a new type of intermediary business and other off-balance-sheet business,at the same time to expand and develop commercial Banks internal talent,and to develop scientific and rational pricing mechanism and to strengthen the enterprise risk control.On the other hand the government should play their regulatory role for the commercial Banks and other financial institutions to provide a good financial operation environment,and the relevant financial regulatory departments such as the China banking regulatory commission,the central bank should also play a role of the supervision and regulation.