China Commercial Banks’ Financial Disintermediation

Financial disintermediation was born in the United States in1966, the direct cause of which is the deposit rate cap regulation of depository institutions. Bank deposit and loan business shrink, maturity mismatches and direct financing scale expansion, Etc. were the result of market allocation of resources, and also the reflection of profit-driven. In today’s financial liberalization, the third industrial revolution is under way, countries’financial system correlation enhancement, which makes China’s financial disintermediation shows the characteristics of long-term, repetitive and contagious. On the one hand, the financial product innovation emerge in endlessly, the long-term trend of direct financing under the policy encouragement develope rapidly, combined with inflation undercurrent, this situation will inevitably lead to transformation changes of financing structure of society as a whole, the development of the financial disintermediation has a long-term nature; On the one hand, because of the special national conditions, the collapse of the risks faced by the Bank of China is relatively small, and compared with capital market such as stock, futures, funds and other tools, risk of bank base product is very low, in the case of the vagaries of financial environment, is a conservative hedge choice, which made the development of the financial disintermediation shows the characteristics of repeatability; on the other hand, disintermediation out money from the commercial Banks will directly or indirectly affect total capital and money market funds and supply channels, etc.,and thus have an impact on the effectiveness of the central bank’s monetary policy, and even affect the entire financial system, and this effect will affect other countries through the channel of currency and trade, finance disintermediation infectious enhanced then.Under the combined effects of the development of multi-level financial markets, the expansion of the shadow banking, the rapid development of the third-party payment and the internet financial, and the negative real interest rates and the marketization of interest rates, the financial disintermediation show its influence in a new attitude. In this paper, on the basis of relevant theories, after a brief introduction of the financial disintermediation, the author designed a series indicators which is suitable for the measurement of the extent of financial disintermediation. This article mainly focus on the measurement of occurrence and development of present financial disintermediation of banking financial institutions in our country through out the ten years from2002to2011, analysis the result considering the current background, and try to find out the driving force behind the phenomenon of financial disintermediation, expounds the influences of the financial disintermediation, and put forward certain realistic significance suggestions for the future development of commercial Banks.