Research On Operational Risk In The Intermediate Business Of Chinese Commercial Banks

With the compression of profit margin of deposit and loan business in the traditional financial industry,intermediate business of commercial Banks has gradually become one of their main businesses,and the proportion of intermediate business income has increased rapidly.In recent years,China’s commercial Banks have witnessed rapid development of intermediate business,continuous innovation in types,and elongated business chain.This directly leads to increasingly prominent operational risks of commercial Banks.The main performance is Human factor,external fraud,internal process,system design defects and Product pricing lacks uniform market standards.How to avoid the operational risk of commercial banks is worthy of systematic study from theoretical and empirical aspects.This paper firstly sorts out the domestic and foreign research literature and theoretical framework on intermediate business and operational risk of commercial Banks.Secondly,it analyzes the types and characteristics of intermediate business of commercial Banks in China,and identifies problems in the manifestation and management of operational risk of intermediary business.After that,this article selects the annual data of 14 listed Banks from2008 to 2017,to build a model for analysis.This paper divides the research objects into two groups: large commercial banks and small and medium-sized commercial banks.Compare the effects of factors such as human factor loss,operational process and system defects,external fraud,non-performing loan ratio,intermediate business operational risk capital withdrawal,and import billing interest rate on the intermediate income of commercial banks.The empirical results show that human factors and external fraud are negatively correlated with the intermediate income of commercial banks.Intermediate business operational risk capital withdrawals are significantly positively correlated with intermediate business income.Operational processes and system deficiencies are significantly negatively correlated with small and medium-sized commercial banks and not significant for large commercial banks.Non-performing loan ratio and the interest rate of import bills are significantly are not significant for commercial bank intermediary business income.Finally,some countermeasures and suggestions are put forward: commercial banks should establish an intermediate business operation risk loss database,increase funding for personnel training to prevent external fraud,and they should arrange the capital accrual of operational risk to prevent the occurrence of operational risks.The intermediary business department of large commercial banks should pay more attention to the operational risks caused by human factors..Small and medium-sized commercial banks should focus on preventing losses caused by external fraud,and strengthen the improvement of their own business operations processes and systems,and reduce the adverse impact of operational risks on banking business,to enhance the operational capacity and risk prevention level of the intermediate business of commercial banks.