Research On The Influence Of Chinese Financial Disintermediation On The Traditional Business Of Commercial Banks

In the 1960 s,an important economic phenomenon emerged in the United States,which aroused great interest of many foreign scholars and began to study,that is,financial disintermediation.It was a phenomenon in which the supply and demand of funds were not directly financed by financial intermediation.The high inflation rate in the United States accelerated the rise in interest rates.But when the interest rate of money market is higher than the interest rate of bank financial institution,the deposit begins to break away from the banking system in the nature of capital profit,resulting in financial disintermediation.In China,financial disintermediation was gradually demonstrated after 21 th century with the rapid development of China's capital market.With the gradual emergence of the results of reform and opening up,China's economy has taken off at an incredible rate that makes western countries inconceivable.The rapid development of the economy brings about the rapid development of the capital market,the diversification of investment and financing channels,the rise of Internet finance and the change of people's financial concept,which leads to the inevitable emergence of financial disintermediation in China.As the main component of our country's economy,commercial banks bear the brunt of the impact,and the traditional business,which is the core of the commercial banks,is severely challenged.This paper first describes the relevant background of financial disintermediation,preliminary understanding of the situation of financial disintermediation in China,leading to the necessity of research.Then combing the relevant literature at home and abroad,there is a certain degree of understanding of the current situation of financial disintermediation research.And clarify the relevant theories in order to seek solid theoretical support.Under the national conditions of China,the specific performance of financial disintermediation,the current trend and the reasons for the formation of the financial disintermediation are discussed.And take Bank of China as an example to analyze the impact of financial disintermediation on the traditional business of the Bank of China.Then select the stock financing amount,bond financing amount and premium income as the standard to measure financial disintermediation from the first quarter of 2001 to the fourth quarter of 2016.The VAR model is constructed and its influence is analyzed by impulse response analysis.Finally,it is concluded that financial disintermediation has indeed appeared in China.it is at its initial stage and it has had a certain impact on the traditional business of commercial banks.In view of this conclusion,this paper puts forward some constructive suggestions,such as innovating management,attaching importance to small and medium-sized enterprises,developing intermediary business and so on.