Research On Price Mechanism And Risk Control Of Intermediary Business In Chinese Commercial Banks

With the deep revolution of international financial market and the high development of national economy, Chinese financial system is experiencing significant change. The creative development of intermediary business in commercial banks is a new subject which is a strategic task for bank system and even for the whole economic field.:It means that the development of Chinese commercial bank' intermediary business has stepped into a new stage when a mass of foreign financial institutions, enter into Chinese financial markets and start to set foot in domestic banks'intermediary business with powerful advantage after china's entry into WTO.The article is trying to analyze the creative mechanism of commercial banks at home and abroad by the methods of comparison analysis and induction-deduction in order to find out china's disparity. In the foundation, the article mainly analyses, and researches about pricing mechanism, internal risk control arid external risk supervision faced by domestic commercial banks during innovation by the means of combining normative analysis with positive analysis and combining theoretic analysis with quantitative analysis through detailed data, graphs and the theories of economics, accounting, marketing and financial engineering.This article mainly includes four parts:(1) The article-discusses the instructive features, demand and behavior characteristics of intermediary business market in Chinese commercial banks; it researches deeply on the "TRICK"model which'describes the motivation of creative development for intermediary businesses by comparing.development and creative motivation of intermediary business in commercial banks at home and abroad. According to Chinese situation and characteristics of intermediary business, based on "TRICK" model, the article proposes "6+1+1" dynamic mechanism model which can reflect influence factors of intermediary businesses'creative development in Chinese commercial banks.(2) After stated the misunderstanding of commercial circle and consumers on the pricing of intermediary businesses, this article discusses the necessity of creative price mechanism research of intermediary businesses in commercial banks, analyzes connotation of price mechanism and relative argument on pricing power for intermediary businesses, gives comprehensive research on determination mechanism of intermediary businesses'prices from views of price's connotation, features, principles, procedures, goals, influential elements and strategies of pricing for intermediary business products, and then proposes two kinds of synthetically pricing model of intermediary business products.(3) The article gives a basic theoretic analysis of intermediary business'risk from several aspects including the theoretical definition, categories and particularity. It concludes the risk's formation mechanism and distinguishing procedures of commercial banks'intermediary business. It does the comparison and evaluation of several risk evaluating methods which are used widely in the evaluation system of commercial banks'intermediary business. It uses VaR model to proceed the case analysis to market risk of intermediary business products whose return rate presents normal distribution. It further points out the necessity and rules of internal risk control and constructs the simple model of risk control.(4) The article proves that we should pay more attention to the external control of Chinese commercial banks'intermediary business by enumerating the drastic loss events of financial derivatives and giving the examples that famous banks in the world suffered bankruptcy and drastic loss because of bad regulation. It also predicts the trend of supervision innovation for Chinese commercial banks'intermediary businesses by analyzing foreign banks'regulatory approach and concrete measurements.