Obstruction Analyze And Strategy Of Intermediary Business In Commercial Bank

With the influx of foreign banks into China as well as the increasingly open financial policy of our nation, the competition among banks in China has become more severe. Moreover, the major banks in China are in the particular period of joint-equity reform which urges them to increase the entire profits. However, the profits brought about by deposit and loan---the traditional services of the general commercial banks, have been shrinking in their commercial operation. Hoping to increase the potential profits, many commercial banks in China have introduces intermediary business to adapt themselves to the trend of joint-equity reform and the variation of the market demand. With the gradually increasing dependence on the intermediary business to create profits, the majority of Chinese commercial banks have participated in the international competitions.Besides the rich capital,large-scale,advanced management and operation, foreign banks give our banks an impact on the intermediary business. Intermediary business is one of three main businesses of commercial banks. Commercial banks can profit from intermediary business because of its characteristics of low cost and high profit. Then it will become the high-level competition.Foreign banks pay much attention to intermediary business. With the long-term rapid development , the management and operation of intermediary business have been mature. Non-interest income occupies more and more proportion in the total income generally from 25% to 50%. Recently the intermediary businesses of commercial banks have an unparalleled development and bring much profit than equity-debt business. Compared with foreign banks, deposit-debt in our banks is the maim mode, credit assets is the main assets and debt interest is the main income. Now commercial banks ask for much income which must depend on the rapid development of intermediary business. Furthermore the rapid development of intermediary business is also the result of drastic competition.This essay comprises seven parts. The first part is the introduction as to the background of developing intermediary business of commercial bank. This part also discusses the purpose and meaning of the study. In the second part we summarized the research production done by scholars about intermediate business in foreign countries and our own nation. Then the third part is about the research theory and the originality innovation. In the fourth part we briefly describe the current status of intermediate business in foreign countries. Next, in the fifth part the current status of intermediate business in our nation is analyzed. Furthermore in the sixth part we analyzed the development strategy of intermediate business in our nation. In the last part we discuss the future of developing intermediate business.