Research On Intermediary Business Development Of Commercial Banks In China

Intermediary business is off-balance- sheet activities. Profit from intermediary business is non-interest income of commercial banks. Through intermediary business, commercial banks can provide all kinds of financial service. Along with globality, liberalization and information tendency of finance, money market competition will be intense. Interest profit of commercial banks is decreasing. Because of smaller risk, lower cost and higher income, intermediary business becomes an important way of increasing commercial banks' profit. Development of intermediary business is a tendency of modern commercial banks. It's especially important for commercial banks in china, because one hand intermediary business can increase profit, scatter the risk; on the other hand development of intermediary business is need to face competition from foreign banking institutions. First, this paper introduces the characteristics, classification and background theories of intermediary business. The background theories of intermediary business development are financial innovation theories. These theories have practical significance for intermediary business development of commercial banks in china. Then, through the comparison and analysis of policy environment, bank management, market foundation etc. between foreign banks and commercial banks in china, this paper concludes that the variety of intermediary business is a little and the proportion of non-interest income in the whole income of commercial banks is small, and restricted factors are policy, bank management and market demand etc. we should learn successful experience from foreign banks. Finally, this paper puts forward the whole thinking about intermediary business development, including principles, countermeasures and strategy. Commercial banks in china should pay attention to and stress economic performance of intermediary business. Countermeasures include that to perfect policies and laws, to create and build up market demand and to strengthen bank management etc. Development strategy of intermediary business contains center on customer, products development, products marketing and cooperation between banks etc.