-
Intermediate business of commercial
banks
innovation: the international
experience and enlightenment
Cheng Hua
Abstra
ct
：
I
ntermediate
businessIs the basis and the origin of the
commercial bank, and
the new profit
growth point of commercial Banks. In this paper,
the west commercial bank
intermediary
business
innovation
motivation
and
current
situation,
then
explains
its
enlightenment significance to our
country.
Key
words
：
Intermediate business;
Financial innovation; Mixed management
Intermediate
business
innovation,
and
by
regulators
or
commercial
Banks
as
the
main
body, intermediate business in
commercial bank system, internal management,
financial
innovation
of
the
market,
products
and
technologies,
etc.
Commercial
bank
middle
business innovation
as an important part of financial innovation, is
developed in practice,
its theoretical
basis mainly comes from the modern theory of
financial innovation, which is
representative of constraint induced
type financial innovation theory
(w. l.
S lb e I r),
avoid
sex
(E.J.K a n e)
financial innovation theory,
transaction cost theory
(J.R.H ek I S:
j. ieh a n
S),
(s. I.G r e e n u m b: C, F, H d a y W o o),
and asset appropriation theory,
scope economy theory.
Based
on the above theory as guidance, this paper
analysis the western commercial bank
middle business innovation motivation
and current situation, in order to provide
reference
and enlightenment for our
country bank intermediary business innovation.
Modern
commercial
bank
intermediary
business
innovation
specific
reason
analysis
2 0 century 8 0 s,
western commercial Banks has been the traditional
deposit and lending
business
is
the
management
focus,
but
on
the
following
factors,
driven
by
the
west
commercial bank intermediary business
innovation to flourish, and most of these factors
are found support in theory.
(a) the needs of customers.
Along with the development of economy
and growing middle class not only wealth safety,
and
puts
forward
higher
requirements
to
value-added
services,
need
bank
provides
various financial tools, the increasing
need of intermediary business of consulting,
agent,
etc.
After
the
collapse
of
the
bretton
woods
system,
the
interest
rates
on
frequent
exchange rate
fluctuations, the microscopic economic subject
urgently need to transfer to
evade
interest
rate
risk
of
tools,
formed
with
scattered,
transfer
function
of
the
intermediary business risk, such as
futures, options and swaps, huge demand.
theory
explains
the
wealth
growth
in
demand
for
financial
assets
and
financial
transactions, and confirms this period
of time in western countries in the middle of a
big
motivator of business innovation.
(b) the market competition
2 0 century 8 s,
western banking competition is mainly
focused on product quality, price,
etc.
Into
0
s,
9
operating
environment
changes
make
the
industry
more
competitive,
Banks in service, variety, quality and
the price difference is shrinking, the new product
life
gradually shortened, competitive
advantage can maintain time is very limited, this
makes
the rich service content of
intermediary business has become an important
means to meet
customers' needs.
2 0 s, 9 0 century western countries
has fallen lower and lower market interest rates.
The
fall in the spread income reduced
net interest margin of Banks. In this case, the
bank in
order to survive, have to adapt
to changing market to develop all kinds of spread
business,
in order to increase income.
situation
hindered
the
financial
institutions
to
achieve
the
profit
maximization
goal,
certainly will force
them to explore new financial tools, services
varieties, from both inside
and
outside,
in
order
to
increase
their
competitive
ability.
According
to
this
theory,
the
founder of the silber,
1970
—
1982years, the United
States nearly 6 0% can be explained
with the theory of financial
innovation.
(c) regulation of
relaxation
Relaxation
of
financial
regulation
law
makes
intermediary
business
development
of
commercial
Banks
to
have
bigger
autonomy,
and
greatly
promoted
the
innovation
of
intermediary business. 2 0 century
since 8 s, the financial regulatory authorities
pursued
without
banned
permission
regulatory
philosophy,
modify
the
relevant
laws
and
institutions,
relaxed
management,
and
financial
business
is
becoming
more
and
more
liberalization.
In
loose
legal
environment,
financial
regulation
can
commercial
Banks
according to the differences in
customer demand for innovative products
(d)mixed by the camp
2
0
century,
growing
financial
innovations
blur
the
boundary
between
the
different
business
of
financial
institutions,
financial
globalization
has
intensified
competition
between
financial
institutions,
separate
operation
system
began
to
collapse.
Following
shall be adopted by the United States,
Japan and other countries such as Britain, have to
give up separate operation to mixed
operation. America in 1999 at the end of the
financial
services modernization act of
decentralized control laws made a breakthrough,
repeal and
modify such as
“
Universal Banks
bank
”
Holding a
large number of company law in the United States
plays an important role in the
financial system of financial law, the
counter-measures to give up mixed on the path of
securities
firms
and
insurance
companies,
the
joint
venture
between
the
financial
institutions to
establish a joint venture between, prudent
management of financial system,
to
strengthen
the
competition
of
the
financial
services
industry,
improve
its
efficiency.
Since
then,
countries
have
to
break
the
restrictions,
implementing
differentiated
management
since
the
mixed
management,
to
meet
customer
requirements,
industry
business
crossing
and
infiltrating
each
other
more
and
more
widely,
the
intermediary
business of commercial Banks
increasingly extensive, type, make the modern
commercial
Banks become worthy of the
name
development space for intermediary
business innovation.
According to the
special
assets change management in the
field of cost is higher, the easier it is to
appear separate
operation. On
the
other hand, the easier
it is to appear mixed management. As Banks
expanding business scope and scale of
operation, its asset specificity showed a trend of
weakening, intermediate business
innovation, there is no need to pay too high
switching
costs, which led to the
intermediary business innovation continuously
active
(e) I T technology development
perfect risk-control mechanism
2 0
century, 9 0 s is bank of America's fastest
growing period, before and after the A T M,
minicomputer, data warehouse, customer
relationship management system, obtained the
rapid
applications
such
as
online
banking,
bank
trading
electronic,
paperless
and
integration trend, the various trades
management and customer relationship maintenance
began to rely on the computer and
electronic means A lot.
In
addition,
the
effective
commercial
bank
internal
legal
risk
control
mechanism
is
the
important
foundation of the rapid development of the
intermediary business. A successful
intermediary
business
products
to
meet
customer
needs,
is
operational,
and
legal
framework of rational design, packing,
also accord with the existing laws and
regulations.
Intermediary business
products is often a combination of different
financial products and
derivatives,
on
the
legal
relationship
is
characterized
by
multiple
combinations
of
legal
relationship
and
the
different
rights
and
obligations
of
cohesion.
Intermediary
business
legal
relationship
is
complex,
easy
breeding
ground
for
legal
risks.
To
intermediary
business to prevent legal risks, the
west bank intermediary business for the provisions
of
the
detailed
and
comprehensive;
In
addition,
the
commercial
Banks
themselves
also
attaches great importance to the
internal legal institution construction and its
function of
the
play, set up
effective internal legal risk
prevention mechanism, so
as
to realize
the
promote
intermediate
business
developed
rapidly,
and
the
purpose
of
effectively
guard
against legal risks.
microscopic economic
structure changes caused by the financial
transaction costs down.
The development
of science and technology make the bank
transaction costs of dominant,
and
risk-control mechanism, perfect the beneficial
bank hidden costs, and long-term cost
is reduced, the two kinds of bank
intermediary business innovation are brought about
by
the can get support from the theory
of transaction cost.
The present
situation of the western commercial bank middle
business innovation
Throughout the west
commercial bank middle business innovation
history, 2 0 century 6 0
a 4 s, 9 0 0
years, west commercial Banks' intermediary
business era of prosperity. Of
which
the business innovation mainly displays in the
following respects:
(a) innovation
varieties is unusually rich
In 6 0 -8 0
s, 2 0 century west bank financial innovation
appears the climax and the pattern
of
prosperity,
all
kinds
of
innovation
level.
Among
them,
the
intermediary
business
innovation
of
financial
innovation,
financial
tools
innovation,
for
example,
in
4
5
major
financial
innovation, intermediary business innovation of
the three eight. Make commercial
bank
intermediary
business
innovation
all-encompassing
supermarket
accord
ing to the statistics,
Used by western
commercial bank intermediary business has amounted
to 20000 kinds of
varieties,
such
as
the
United
States
banking
intermediary
business
scope
includes
the
traditional
banking,
trust
services,
investment
banking
and
insurance
business,
fund
business and so on, they can engage in
money market operations and discount can also
be engaged in commercial paper and
capital markets businesses.
And
experience
among
western countries after the wave of
business innovation compared to commercial Banks,
Chinese
commercial Banks show the
narrow scope of business (see table 1)
Table
1
：
Western
countries
the
business
scope
of
the
commercial
Banks
and
Chinese
commercial Banks
Source: based on relevant literature
(b) of the intermediary business scale
rapid growth.