The Effect Of Financial Disintermediation On Non-bank Financial Industry

Financial disintermediation first appeared in 1960s in the United States. It refers funds of surplus side and deficit side to bypass financial intermediaries deal directly and mainly appears as the bank financial assets fall in the overall proportion of financial assets and the financing amount of direct financing in the whole society the proportion rising. Financial disintermediation in our country is developing in the 1990s, along with the deepening of the development of Chinese securities market. Financial disintermediation has major impact on the financial system, gradually changing the pattern of the bank’s financial system, promoting the development of the non-bank financial sector and making it appears increasingly important in the financial system.In this paper, on the basis of former financial disintermediation research, the author focuses on the shock of Internet financial innovation on the traditional financial sector and the role of Internet Finance in promoting financial disintermediation. By means of empirical analysis, this paper also studies on the impact of financial disintermediation on the non-bank financial sector especially the securities industry. Using the time series data of the first quarter of 2008 to third quarter of 2013, which proves that the financial disintermediation impact on bank debt and securities industry. Finally, the paper concludes the appearance and impact of the financial disintermediation, and put forward the corresponding policy suggestions.