Research On The Influence Of Financial Disintermediation On The Performance Of Commercial Banks In China

As early as 1960s in the United States,the phenomenon of financial disintermediation has began to appear.With the promotion of economic globalization,the developed countries such as Britain,Japan,Germany,France,and Italy have also moved toward the general trend of financial disintermediation.Thereafter,financial disintermediation has become a mainstream trend in the development of the market economy toward a higher level.Under the global development of financial disintermediation,the commercial banks of China are facing multiple challenges such as the development of multi-level capital markets,the end of the interest rates liberalization reforms,and the outbreak of internet finance,in terms of economic,policy,and technological change.Financial disintermediation has become increasingly prominent and deepening.Influenced by financial disintermediation,commercial banks faced a lot of problems,such as the contraction of loans and deposits,the decrese of spreads,the abatement of effectiveness and the cumulation of risks.Meanwhile,commercial banks also faced opportunities in terms of income structure,innovation,profit ability and risk management,etc.Considering that commercial banks play a leading role inChina's financial system,which has important decisive effect on financial stability and economic development.commercial banks stand in the breach.Therefore,this paper combines qualitative and quantitative analysis to explore whether financial disintermediation has an effect on the operational performance of China's commercial banks,and how they function,both in terms of profitability and risk.So as to provides theoretical support for the management of commercial banks.On the basis of reviewing the relevant literature and materials,in order to clarify the scope of this study,this paper summarizes the core theories of financial intermediation,financial disintermediation,and commercial bank's performance.Then this paper detailediy describes the performance and reson of financial disintermediation in our country.Besides,this paper concretely analyzes the effects of financial disintermediation on the operating performance of commercial banks from two ways of business structure and revenue structure of commercial banks and three influence of distributary,accumulation and correction.Based on qualitative research,this paper selected the financial data of 24 listed banks(in addition to Wuxi Rural Commercial Bank)from 2006-2016 as research samples to construct the econometric model.The explained variables include profit index(ROA)and risk index(Z),and the explanatory variables incude disintermediation of assets and liabilities.Through quantitative analysis,the results showed that:Commercial bank's asset and loan business are greatly affected by financial disintermediation,and the higher the degree of disengagement of assets and liabilities,the lower the profitability of commercial banks,and the greater the risks faced;Although financial disintermediation promotes the growth of non-interest income of commercial banks,it cannot offset the negative impact on commercial banks' assets and liabilities.Finally,according to the empirical conclusions,the paper proposes countermeasures for commercial banks to deal with the shocks and to seize the opportunities created by financial disintermediation.In order for commercial banks to innovate profit models and improve the ability of risk resistance.