The Study Of The Intermediate Business Income Performance Of China’s Commercial Banks

Commercial banks are the main body of the modern financial system and play a crucial role in the operation of the national economy. Since the China has been joined in the WTO formally on December11,2001, our financial industry experienced a series of profound opening and reforms. The financial industry of China is fully opened on December11,2006, now, the joint-stock reform of Chinese state-owned commercial banks has been basically completed, and all of those make undergone profound changes of the business environment happen to the commercial banks in China. At the same time, with the international financial liberalization, the pace of China’s market-oriented interest rate reform speeding up and the growth and development of non-bank financial markets, China’s commercial banks facing a lot of difficult business challenges. Nowadays, expanding the business of the commercial banks, developing the intermediary business has become one of the main tasks of the strategic restructuring of China’s commercial banks.In recent years, the intermediary business of China’s listed commercial banks has been developed rapidly, with the scale of intermediary business revenue increasing and the proportion of share in operating income as well as improving, we should not only pay attention to the scale of the intermediary business revenue, but also pay attention to the efficiency and effectiveness of the intermediary business revenue. Therefore, this paper analyzes the performance characteristics of the china’s commercial bank intermediary business revenue, estimates the cost efficiency value and the asset efficiency value of the intermediate business revenue, explores the operational effectiveness of the intermediary business revenue for the banks’traditional banking business and profitability to evaluate the performance of the intermediary business revenue. So that we can have a clear view to the performance status of the intermediary business revenue of China’s listed commercial banks, have a correct and clear understanding of performance, and thus have certain referential significance to the determination of the commercial banking business development strategy as well as the improvement of the intermediary business revenue performance.The paper define the definition and the scope of the intermediary business revenue based on the meaning of the intermediary business and combined financial statements of listed commercial banks in China. Then the intermediary business revenue of China’s listed commercial banks as the main object of study, this paper summarizes the status and structural characteristics of China’s listed commercial bank intermediary business revenue on the basis of the data analysis, uses the ratio analysis and panel data models to evaluate the efficiency level of the intermediary business revenue from the two aspects of the efficiency value and the associated benefits of the intermediary business revenue on the basis of the intermediary business revenue from2007to2011of16listed commercial banks and other financial data. The results of this study show that China’s listed commercial bank intermediary business revenue has entered a stage of rapid development. The size of the intermediary business revenue as well as its share in operating income continues to grow, but there is a clear difference between the development of large commercial banks and medium-sized commercial bank. The share and the cost efficiency value and assets efficiency value of the large commercial banks are relatively high, but the pace of development of small and medium-sized commercial bank is faster. The two types of banks in the intermediate business development have their own characteristics with different advantages business; the other hand, in respect of the association benefits of the intermediate business income, the empirical test results of the panel data model show that there is a significant positive correlation between the intermediate business income and the traditional balance business and banking profitability of china’s listed commercial banks. The improvement of intermediate business income is conducive to the development of traditional business, and the assets of the bank’s net profit margin also increased with the intermediate business income levels increase. This shows that the intermediate business income can really bring significant operating efficiency to the listed commercial banks at the present stage. So the commercial banks should continue to promote the development of intermediary business, expand the intermediate business income sources, improve the efficiency of the intermediary business revenue.