A Preliminary Study On Agent Services For Other Banks Corporate Business By Means Of Cash Managment Product

Since the global financial crisis in2008, China’s commercial banks operating environment has been undergone profound and significant change. Especially after the Third Plenary Session of Eighteen Central Committee in2013, an overall and deeper financial reform in China has began. Based on those changes, China’s commercial banks have to change their way of business development and enhance the level of intermediate business income in total income. The R&D in financial products and ability to provide financial services have become an important measurement of a commercial bank competitive strength in market.At the end of2013, the State Council promulgated the "Guiding Opinions on the financial support of economic adjustment and structural transformation and upgrading"(Guo Ban Fa [2013] No.67) document. Lots of the attentions were attracted in this document by allowing private capital to establish private commercial banks who will be fully responsible for their own risks. It can be predicted that the financial reformation will continue in a foreseeable future. China’s commercial banks market will become more diversified. A large number of small and medium size private commercial banks along with several state-owned commercial banks and joint-stock commercial banks will together constitute China’s commercial banking system. It will force commercial banks accurate their positioning in intensive competitions, and thus build up the difference of China’s financial services system. In this case, the large state-owned commercial banks will have a space of cooperation with regional and specialized small and medium commercial banks to use their product advantages.Based on this market prospect, the present thesis focuses on the study of cash management products. In this study, we hope to find ways to broaden the scope of cash management products application, extend the customer base of cash management products and enhance the income of cash management products. We could use existing cash management products to provide the corporate financial services for other commercial banks. If we can upgrade the existing cash management products, the designation will be a new challenge to make the product provide the corporate financial services for other commercial banks properly. After the upgrading, several questions also need to be answered:How to design system operation process, funds flow process, and the on-line process? How to implement risk control measurements to make the system operational and thorough? In the end, this paper studies the future direction of the business, and makes some suggestions for the commercial banks who intend to carry on this business.