The Running Broker System And Development Of Financial Industry In Modern China

The running broker system is a popular business model in some industrial and commercial,financial and other industries in modern China.It is an institutional arrangement made by various commercial and financial organizations to expand their business and investigate customer credit and business conditions.The phenomenon of " running " first appeared in the Ming and Qing Dynasties.These runners who shuttled through the market all day,specializing in information communication between the two sides of market transactions and product trading intermediaries,were called " running broker " at that time.As a kind of field staff hired or recruited by industrial and commercial enterprises,running broker is responsible for collecting various market business information as a reference for enterprise decision-making and external publicity and marketing of enterprise products and services.In modern times,the running broker system was widely used in the financial industry,especially in the banking and banking industry.The running broker system had an important impact on its business development.The " running broker " of modern silver money industry mainly played the role of intermediary between lenders and borrowers,as well as credit investigation and inquiry.This tradition of running has not withdrawn from the historical stage due to the highly developed information technology today,but has appeared in new forms in all walks of life,and the financial industry is still no exception.It is of practical significance to investigate the running broker system in the field of modern Chinese financial industry and its influence on the development of the industry.However,the current academic research on this issue is very rare.In view of this,the author intends to take the modern bank industry and the banking industry as the main object of investigation.This paper discusses the phenomenon of running broker and its related system design in the field of modern financial industry,examines the reasons for the adoption of the running broker system in the financial industry,analyzes the relationship between the running broker system and the development of modern financial industry,and comments on the advantages and disadvantages of the system in the implementation process,in order to provide some useful enlightenment and reference for the development of contemporary Chinese financial industry.It is pointed out that the running broker system is the inherent tradition of the money houses,and the modern banks follow this institutional arrangement.The responsibility of running broker is elaborated in detail from three aspects: promote business,credit investigation and economic information survey.The role of running broker has several important characteristics: large authority and high status;great work flexibility;lack of professionalism,organization and systematicness;their investigation is closed.Due to the serious problem of information asymmetry in the credit market,it is easy to produce credit risks,which determines the necessity and rationality of the existence of the running broker system.The business habit of taking running broker as the leading business dealings makes the bank industry must follow the running broker system.The the running broker system has become an important mechanism of risk management for banks and banks,which promotes the promotion of deposit and loan business.However,the defects of weak supervision and restraint mechanism and one-sidedness of investigation also lead to serious problems.Therefore,the banking industry had set up the bank investigation department and China credit rating institute.Running broker system and China credit rating institute complement each other and constitute a relatively perfect credit investigation mechanism.