The Effects Of Intermediary Business On Commercial Banks In China

Recently,with foreign banks' entry and the process of interest rate liberalization,developing the intermediary business is becoming one of the most important targets of domestic commercial banks.In the last few years,the intermediary business has developed rapidly and caused more and more discussion.On the one hand,the intermediary business is the important component of the profit,and it has a positive impact on the commercial banks.On the other hand,over high level of the intermediary business may increase the bank risk,thus it has a negative impact on the commercial banks.This paper mainly researches about this controversy and is divided into four parts.First of all,we make some foreign and domestic literature review about the intermediary business.Then,we discuss the relevant concept of the intermediary business,including the definition,different classification,characteristics and the risks.Next we make status analysis of the domestic intermediary business by using tables,figures and some methods,such as contrastive analysis.As for the empirical analysis,we analyze the State-owned commercial banks and the joint-stock commercial banks respectively,getting the different results.Therefore,we make further research to examine the threshold effects and estimate a moderate range.In this range,the intermediary business income level can play a positive role in improving operating performance of banks.In China,the intermediary business income level of State-owned commercial banks is in the range,however,the intermediary business income level of joint-stock commercial banks beyond this range.Therefore,the intermediary business income level has a positive impact on State-owned commercial banks,but has a negative impact on joint-stock commercial banks.The data adopted is from 13 major commercial banks in China in 2007~2015.At last,we give some conclusion and recommendations according to the results...