Research On The Strategy Of Improving The Profit Contribution Degree Of Commercial Banks’ Intermediate Business

Since China entered a new era of development in the 21 st century,with the opening of the financial market and the proposal of market-oriented interest rates,the competition in the financial industry has become increasingly fierce.In the context of establishing a new pattern of international and domestic dual cycle development,various types of commercial banks have begun to pay more attention to intermediary business that combines light and retail businesses in order to seek new profit growth points,and the development of intermediary business has steadily advanced.However,in recent years,various realities such as the diversion of traditional businesses,the innovative development of financial technology companies,and the decline in profits caused by regulatory fees and benefits have had a significant impact on the development of commercial banks’ intermediary business.How to meet regulatory requirements and market demands externally,and meet internal strategic and management demands has become a common challenge for commercial banks to enhance their intermediary business profit contribution.Therefore,based on this,this article analyzes the current situation of intermediary business income of listed commercial banks from 2007 to2021.On the basis of overall understanding,it is further divided into three categories:state-owned banks,joint-stock banks,and local commercial banks to conduct a detailed analysis of the changes in their intermediary business income scale,income structure,and profit contribution.At the same time,using the data of listed banks from 2007 to2021,we empirically test the impact of intermediary business income on bank profits,and finally find that there is an "inverted U-shaped" nonlinear relationship between the two;In addition,this article empirically finds that financial innovation approaches,including financial product innovation,management service innovation,financial technology innovation,and organizational innovation,can be used as ways to enhance the profit contribution of commercial banks’ intermediary business;The results of bank heterogeneity analysis indicate that different types of banks have different approaches and strategies to enhance the profit contribution of intermediary business,and should formulate different development strategies based on specific circumstances;Finally,the main conclusions of this article are summarized,and relevant suggestions are proposed for the high-quality and sustainable development of commercial banks’ intermediary business.