Intermediary Business Development And Innovation 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.In recent years, with the reform of China' s financial system and the development of its economy, Chinese commercial banks have paid more attention to the intermediary business, because they begin to realize its important role. They try to provide their customers with new services through continuous financial innovation. As a result, their intermediary business has improved a lot. However, compared with that of the banks of western countries, the intermediary business of Chinese commercial banks is far behind in terms of both quality and quantity. As our country has joined WTO, the commercial banks of China are facing the keen competition from foreign banks. The intermediary business has been the focus that is fought for fiercely. At the same time, however, it is for a long time that the commercial banks of China have been devoted to assets and liabilities business. Intermediary business is a 'bottleneck' of the development of Chinese commercial banks. So the development of intermediary business is essential to Chinese commercial banks.This thesis has provided the theories of the intermediary business of commercial banks, presented the currently developing situation and trend of domestic and international commercial banks. Then announces the restricted factors of the development of Chinese commercial banks' intermediary business and provides some tentative suggestions about improving Chinese intermediary business, furthermore points out the direction and point of the innovation.