Research On The Impact Of Financial Disintermediation On The Traditional Business Commercial Banks In China

With the deepening of financial system reform,China's financial market has gradually become developed,matured and strengthened.The development and perfection of stock market,money fund market and bond market constantly change the traditional credit channels of commercial banks.With the vigorous development of non-bank financial institutions and Internet finance,the competition of commercial banks is further intensified.Domestic commercial banks are increasingly affected by financial disintermediation: on the one hand,financial disintermediation makes social funds and enterprises have diversified financing options,in order to reduce the impact of financial disintermediation,commercial banks are obliged to explore new operating and profit models,so as to speed up the formation of scientific management model;on the other hand,under the condition that commercial banks haven't completely transformed and the profit model is still deposit-loan spreads,financial disintermediation makes the scale of deposits and loans of commercial banks decrease in varying degrees,seriously impacting the profitability of their traditional core business.Firstly,this paper reviews and summarizes the domestic and foreign literatures on the concept of financial disintermediation,its causes,measurement methods and its impact.Secondly,on the basis of traditional financial intermediation theory,innovative financial intermediation theory,financial disintermediation cause theory,financial disintermediation risk management theory and financial disintermediation correction theory,this paper analyses the current situation of financial disintermediation and traditional business of commercial banks,which indicates the necessity of the research on business transformation of commercial banks in China.Through research,it is found that financial disintermediation has a negative impact on the traditional core business of commercial banks.The scale of deposits and loans of banks has declined,and the profitability of traditional business has weakened.This paper chooses the relevant data of 15 representative large commercial banks from 2009 to 2017 to study,which not only confirms the above viewpoint,but also finds that financial disintermediation has corrected the operation mode of banks to a certain extent.In order to cope with the impact of financial disintermediation,commercial banks have to transform and innovate and open up new business,so as to seize the opportunity to adapt to the requirements of the new era.In addition,in order to measure the impact of financial disintermediation on the core depositand loan business of commercial banks,this paper uses VAR model and selects the quarterly data of stock and bond markets from 2000 to 2017,and innovative addition quarterly data of fast developing Insurance Market to VAR Model.Empirical results show that financial disintermediation will have a negative effect on the core deposit and loan business of commercial banks in China,this negative effect is still in the initial stage,but there is a deepening trend in the future.In order to make our commercial banks get rid of the negative impact of financial disintermediation and seek a long-term,efficient and sustainable development path,this paper puts forward some suggestions,such as stable development of traditional business,development of a new type of investment banking business of "capital market + credit" and comprehensive operation.