Research On The Development Of Intermediate Business Of Chinese Commercial Banks Under The Financial Disintermediation

In the 1960 s,financial disintermediation phenomenon first appeared in the United States. Q is the direct cause of the United States Bill of controls on bank interest rates. This phenomenon led capital to bypass the traditional media of financial market in circulation outside the banking system, affecting the profits of commercial banks directly and bring a big challenge to commercial banks. Although Chinese financial disintermediation late than the United States,the rapid development of Chinese economy since reform and opening-up. At the same time, financial markets continue to deepen and mature. With the rise of Internet Finance, financial disintermediation phenomenon is more prominent. The Chinese commercial banks mainly by the difference between the traditional deposit and lending interest rates to profit since the reform and opening up, with a simple business model,the lack of flexibility. In a deeper level of financial disintermediation environment, if commercial bank do not change the way of experience and philosophy, financial disintermediation will reduce their competitiveness in the financial markets, reducing the amount of market share, bring a direct loss of profits to them. By observing the development process of developed country’s’ financial,we can be summed up Intermediate business is an effective countermeasure commercial banks in response to financial disintermediation.With the development of financial markets, commercial banks will inevitably decline in traditional business. Intermediate business is a important field every commercial banks need to develop,to enhance their market competitiveness. In the situation that traditional business of commercial banks is difficult to support improve market competitiveness. If the intermediary business remains a single species, lack of innovation can not meet the market demand, it can only be eliminated. Financial disintermediation is an irreversible trend. Commercial banks should adapt to changes in the environment, changing their business philosophy and approach. This paper analyzes the status quo of China’s intermediate business development to propose appropriate measures,to enhance the strength of the intermediate business and market competitiveness.To sum up, this paper roughly divided into the following elements. Firstly, this paper integrated theory of financial disintermediation and intermediary business based on the extensive literature. Secondly, based on the financial disintermediation background,I research and analyse the development,current situation and problems of Chinese commercial banks.Thirdly, I empirical analysis of the impact of financial disintermediation of intermediary business with panel data model. Finally, I put forward suggestions and strategies how to improve and enhance the commercial banks intermediate business according to the theoretical and empirical conclusions. In this way, we can from a wide range to enhance the international competitiveness and viability of commercial banks, the rich market demand, promote the development of the market.