On the basis of asset business and liability business, commercial banks make use of the advantages of technology, information, institutional network, capital and reputation, and act as intermediaries and agents to handle entrusted matters such as payment, consultation, agency, guarantee and lease for customers, provide various financial services and charge a certain fee. In two traditional businesses, asset business and liability business, banks participate as a party to credit activities; Intermediate business is different. Banks no longer directly act as a party to credit activities, but only play the role of intermediary or agent, and usually implement paid services. [2]
catalogue
1 classification
By source of income
According to function and nature
take a risk
2 Risk characteristics
Greater freedom
Poor transparency
spread risk
High lever
3 development status quo
domestic situation
Foreign situation
4 function
5 existing problems
6 interim provisions
1 classified editing
Intermediate business is also called off-balance sheet business. The intermediary business of commercial banks mainly includes local and foreign currency settlement, bank card, letter of credit, standby letter of credit, bill guarantee, loan commitment, derivative financial instruments, agency business and consulting business. In foreign countries, the intermediary business of commercial banks has developed quite maturely. The intermediary business income of American, Japanese and British commercial banks accounts for about 40% of the total income, while the off-balance-sheet business scale of Chinese commercial banks generally accounts for more than 15% of their total assets.
Generalized intermediary business is equivalent to generalized off-balance sheet business, which can be divided into two categories, narrow financial service business and narrow off-balance sheet business. In our daily work, the intermediate business is the generalized intermediate business stipulated by the People's Bank of China, while the off-balance sheet business refers to the narrow off-balance sheet business reflected from the perspective of accounting standards. Therefore, according to the traditional business and development of commercial banks, the business of commercial banks can be roughly divided into three categories: asset business, liability business and intermediary business, and can also be divided into four categories: asset business, liability business, intermediary business and off-balance sheet business.
Intermediary business covers a wide range, including settlement, agency, guarantee, trust, leasing, financing, information consultation, derivative financial instrument trading and so on. Therefore, there are different standards for the classification of intermediate business. [3]
Bank intermediary business varieties stipulated by the People's Bank of China [4]
By source of income
At present, the most common basis for dividing the types of intermediary business in the world is the source of income. According to the source of income, the American banking industry divides intermediary business into the following five categories: first, trust business refers to the transaction and service income generated by the trust department; The second is investment banking and trading business, which refers to the income generated by securities underwriting and financial trading activities; Third, deposit account service business, including account maintenance; Fourth, fee income includes credit card fee, loan securitization, mortgage refinancing service fee, sales of mutual funds and annuities, ATM withdrawal fee, etc. Fifth, other fee income, including data processing service fee and income from selling various assets.
According to function and nature
The People's Bank of China divides the intermediary business of domestic commercial banks into nine categories in the Notice on Implementing Relevant Issues (2002):
1. Payment and settlement intermediary business refers to check settlement, import bill of lading, acceptance bills and other fee-based businesses related to monetary payment and fund transfer caused by creditor-debtor relationship.
(1) settlement tool. The main settlement tools for settlement business include bank draft, commercial draft, cashier's check and cheque.
1. A bank draft is a bill issued by the issuing bank and unconditionally paid to the payee or holder according to the actual settlement amount at sight.
2. A commercial bill is a bill issued by the drawer and entrusted by the payer to unconditionally pay a certain amount to the payee or holder on a specified date. Commercial bills are divided into bank acceptance bills and commercial acceptance bills.
3. A cashier's check is a bill issued by a bank that promises to pay a certain amount unconditionally to the payee or holder at sight.
4. The cheque is issued by the drawer, and the bank entrusted to handle the cheque deposit business unconditionally pays a certain amount of bills to the payee or holder when seeing the cheque.
(2) Settlement methods, mainly including settlement methods in the same city and settlement methods in different places.
1. Remittance business is the settlement business in which the payer entrusts the bank to remit the money to the foreign payee. Remittance settlement is divided into three forms: telegraphic transfer, letter transfer and draft.
2. Collection business refers to a settlement method in which creditors or sellers draw a bill to foreign debtors or buyers in order to collect money, and entrust banks to collect money on their behalf.
3. Letter of credit business is a written guarantee document issued by the bank to the beneficiary according to the requirements and instructions of the applicant, which contains a certain amount and pays at the designated place within a certain period of time with the specified documents.
(3) Other payment and settlement services, including fund transfer and liquidation through modern payment systems, and transfer through internal and external networks of banks.
2. Bank card business is a credit payment tool that authorized financial institutions to issue to the society with all or part of the functions of consumer credit, transfer settlement, cash deposit and withdrawal, etc.
(1) Bank card business can be divided into credit card business, quasi-credit card business and debit card business according to payment methods. Debit cards can be further divided into debit cards, special cards and stored-value cards.
(2) Bank cards can be divided into RMB card business and foreign currency card business according to different settlement currencies.
(3) According to different users, bank cards can be divided into corporate cards and personal cards.
(4) According to different carrier materials, bank cards can be divided into magnetic cards and smart cards (ic cards).
(5) According to the different credit ratings of users, bank cards can be divided into gold cards and ordinary cards.
(6) According to the circulation scope, bank cards can also be divided into international cards and regional cards.
(seven) other classification methods, including commercial banks and for-profit institutions/non-profit institutions jointly issued joint cards/accreditation cards.
Three. Agency intermediary business refers to the business that commercial banks accept the entrustment of customers, handle the economic affairs specified by customers, provide financial services and charge a certain fee, including agency policy banking business, agency payment business, agency securities business, insurance agency business, agency bank card acquiring business, etc.
(1) Acting as an agent for policy banks means that commercial banks accept the entrustment of policy banks to handle the business that policy banks cannot handle due to the limitation of service functions and network settings, including the management of agency loan projects.
(II) Acting for the People's Bank of China refers to the business that should be undertaken by the central bank according to policies and regulations, but is designated or entrusted by the central bank to undertake by commercial banks due to institutional setup and professional advantages, mainly including financial deposit agency business, treasury agency business, issuing bank agency business and gold and silver agency business.
(3) Agency business of commercial banks refers to the business of mutual agency between commercial banks, such as handling cheque collection for entrusted banks.
(4) The collection and payment business of commercial banks refers to the business that commercial banks use their own settlement facilities to handle the receipt and payment of designated funds on behalf of customers, such as acting as an agent for various public utility charges, acting as an agent for administrative and financial charges, acting as an agent for paying wages, withholding the repayment of housing mortgage consumer loans, etc.
(5) Agency securities business refers to the business of issuing, redeeming and buying and selling all kinds of securities entrusted by banks, and also includes entrusted services such as debt service, stock dividend and securities fund settlement. The securities here mainly include government bonds, corporate bonds, financial bonds, stocks and so on.
(6) Insurance agency business refers to the business that commercial banks handle insurance business on behalf of insurance companies. As for insurance agency business, commercial banks can accept the entrustment to insure all kinds of insurance on behalf of individuals or legal persons, or sign agency agreements with insurance companies as representatives of insurance companies to undertake related insurance business on behalf of insurance companies. Insurance agency business generally includes policy business and insurance payment business.
(7) Other agency business, including financial entrustment business and bank card acquiring business of other banks.
Four. Guarantee intermediary business refers to the business that commercial banks provide guarantees for customers' solvency and bear customers' default risk. Including bank acceptance bills, standby letters of credit, various guarantees, etc.
Guarantee intermediary business refers to the business that commercial banks provide guarantees for customers' solvency and bear customers' default risk. It mainly includes bank acceptance bills, standby letters of credit and various guarantees.
(1) A bank acceptance bill is a commercial bill issued by the payee or payer (or acceptance applicant), which is applied by the acceptance applicant to the opening bank and accepted by the bank after examination.
(2) Standby letter of credit is a special letter of credit opened by the issuing bank at the request of the borrower, with the lender as the beneficiary of the letter of credit, so as to ensure that the issuing bank pays the principal and interest to the beneficiary in time when the borrower goes bankrupt or fails to fulfill its obligations in time.
(3) All kinds of letter of guarantee business, including bid guarantee, contract guarantee, repayment guarantee and loan guarantee.
(4) Other guarantee businesses.
Verb (abbreviation of verb) commitment intermediary business refers to the business that commercial banks provide agreed credit to customers on a certain date in the future according to the agreed conditions, including revocable commitments such as loan commitment and overdraft limit, as well as irrevocable commitments such as standby credit line, repurchase agreement and note issuance facilities.
(1) The revocable commitment is accompanied by specific terms that the customer must perform before obtaining the loan. During the bank's commitment period, if the customer fails to fulfill the terms, the bank can cancel the commitment. Revocable commitments include overdraft limit, etc.
(2) Irrevocable commitment is a loan commitment that the bank can't cancel at will without the customer's permission, which is legally binding, including standby credit line, repurchase agreement, note issuance facilities, etc.
6. Transactional intermediary business refers to the capital trading activities conducted by commercial banks with various financial instruments to meet the needs of customers' hedging or their own risk management, including financial derivatives such as futures and options.
(1) Forward contract refers to an agreement between two parties to buy and sell an agreed amount of assets at an agreed price at a specified time in the future, including interest rate forward contract and forward foreign exchange contract.
(2) Financial futures refer to futures contracts with financial instruments or financial indicators as the subject matter.
(3) Swap refers to the cash flow exchange between two parties based on their respective comparative interests, which is generally divided into interest rate swap and currency swap.
(4) Option means that the buyer of option pays royalties to the seller in order to obtain the right to trade with the seller of option in an agreed amount at the exercise price during the duration or expiration date of option. Options can be divided into stock index options, foreign exchange options, interest rate options, futures options, bond options and so on.
Seven, the fund custody business, refers to the qualified commercial banks entrusted by the fund management company, the safe custody of all assets of the custody fund, for the custody of fund settlement funds.
Eight. Consulting business is a service activity that commercial banks rely on their own information and talent advantages, collect and sort out relevant information, and combine the characteristics of bank and customer's capital flow to form a systematic plan for customers to meet their business management needs, mainly including financial consulting and cash management business.
(a) enterprise information consulting business, including project evaluation, enterprise credit rating evaluation, registered capital verification, credit certification, enterprise management consulting, etc.
(2) Asset management consulting business refers to providing comprehensive asset management services for institutional investors or individual investors, including portfolio advice, investment analysis, tax services, information provision, risk control, etc.
(3) Financial consulting business, including large-scale construction project financial consulting business and enterprise merger and acquisition consulting business. The financial consulting business of large-scale construction projects refers to the professional scheme put forward by commercial banks for the financing structure and arrangement of large-scale construction projects. Enterprise M&A consulting business refers to the financial consulting business provided by commercial banks for both sides of enterprise mergers and acquisitions. Banks not only participate in the process of enterprise merger and acquisition, but also participate in the planning and operation process of enterprise restructuring, capital enrichment and re-approval, bankruptcy and enterprise restructuring in distress as consultants for sustainable development of enterprises.
(4) Cash management business means that commercial banks assist enterprises to manage cash account positions and demand deposit balances scientifically and reasonably, so as to achieve the purpose of improving capital liquidity and efficiency.
Nine, other types of intermediary business, including safe deposit box business and other businesses that cannot be classified into the above eight categories.
take a risk
The Basel Committee divides the intermediary business into two categories from the perspective of risk: financial services intermediary business and contingent creditor's rights and contingent debts intermediary business. Financial service intermediary business refers to those businesses that can only bring service income to banks without affecting the quality of on-balance-sheet business, including loan-related business, trust consulting business, agency business and payment business. The intermediary business with contingent claims or liabilities refers to the intermediary business that is not reflected in the balance sheet but will be converted into assets or liabilities under certain conditions, including loan commitment, guarantee business, financial derivative business and investment banking business. What standard commercial banks adopt to classify intermediary business depends on the needs of their management. For example, among state-owned commercial banks, Industrial and Commercial Bank of China and China Construction Bank divide intermediary business products into nine categories: settlement, agency, bank card, custody, entrusted loan, housing reform finance, consultant, guarantee and others. China Bank and Agricultural Bank are divided into five categories: settlement, agency, bank card, custody and others. [3]
2 Risk Feature Editor
Compared with the on-balance-sheet assets business of commercial banks, the intermediate business risk of commercial banks is lower, but it cannot be said that there is no risk. Compared with the on-balance-sheet assets and liabilities business, the intermediary business of commercial banks presents the following characteristics.
Greater freedom
Different from the traditional asset-liability business, intermediary business is strictly restricted by financial laws and regulations. In general, as long as both parties agree, an agreement can be reached. Intermediary business can be traded on or off the market. Most intermediate businesses do not need corresponding capital preparation, which leads to excessive expansion of entrusted and self-operated intermediate businesses of some commercial banks and brings certain potential risks to commercial banks.
Poor transparency
Most intermediary businesses are not reflected in the balance sheet, and many businesses cannot be truly reflected in the financial statements. It is difficult for external users of financial statements, such as shareholders, creditors and financial supervision authorities, to understand all the business scope of banks and evaluate their operating results, and the transparency of operations is reduced, which affects the correct and comprehensive judgment of the market on the potential risks of banks and is not conducive to the effective supervision of the supervision authorities.
spread risk
Cross-risks are scattered in various businesses of banks. Intermediary business involves many links, and the credit, capital, accounting, computer and other departments of the bank are all related to it, so it is difficult to prevent risks and clarify responsibilities.
High lever
The so-called high leverage is "small profits but quick turnover". This mainly refers to the characteristics of financial futures and foreign exchange deposit transactions in financial derivative business. For example, a bond investor can buy several bond futures contracts worth $6.5438+0 million in the financial futures market as long as he takes out $6.5438+0 million. Because of high leverage, there is both the possibility of making big profits and the possibility of losing money in financial derivative business transactions. [5]
3 development status editor
domestic situation
Generally speaking, the development of intermediary business of commercial banks in China has gone through two stages. /kloc-from 0/995 to 2000, it was mainly deposits. The main purpose of developing intermediary business is to maintain customer relations, stabilize and increase deposits. Accordingly, the innovation of intermediary business mainly focuses on the business fields of collection and payment, entrusted loans and so on. After 2000, it gradually turned to the income-oriented stage, with the main purpose of preventing risks and increasing income. Correspondingly, high-yield intermediary businesses such as agency insurance, investment banking and asset custody have become the focus of innovation. In a few short years, the intermediary business of China's commercial banks has become an important field of business competition and innovation. In 2002, the intermediary business income of China commercial banks accounted for 3.8% of the operating income, which reached 5.63% in 2003 and around 8% in 2004. During the ten years from 1995 to 2004, the intermediary business income of domestic institutions of the four major banks of industry, agriculture, China and China Construction increased from 6.9 billion yuan to 38.9 billion yuan, with an average annual growth rate of 25.6%. Take China Industrial and Commercial Bank as an example. During the five years from 2000 to 2004, the income of intermediary business of domestic institutions was 3 1 billion yuan, 3.8 billion yuan, 5 billion yuan, 7.9 billion yuan and 1, 65.438+0.5 billion yuan respectively. In the same period, the proportion of intermediary business income to net operating income increased from 4% to 8.77%, and the proportion of intermediary business income to spread income increased. The proportion of intermediary business income in non-interest income increased from 12.9% to 30.5%, the per capita intermediary business income increased from 7,000 yuan to 30,000 yuan, and the intermediary business income per 10,000 yuan of assets increased from 7.7 yuan to 2 1 yuan. In the process of intermediary business development, commercial banks have also explored a set of intermediary business management framework in line with national conditions and their respective market conditions. For example, in 2002, ICBC established an intermediary business committee, with three bank leaders as directors and deputy directors, and the investment banking department took the lead in organizing and managing the development of intermediary business of the whole bank, and established an intermediary business department to formulate special assessment methods for intermediary business; Recently, Bank of China set up a business development committee to co-ordinate the innovation and development of the whole group's business, and set up a special intermediary business management department, which effectively prevented all kinds of risks in the rapid development of intermediary business and achieved legal compliance.
From the 2007 China Financial Stability Report published by the People's Bank of China in March 2008, it can be seen that the net income of domestic business fees of 16 commercial banks increased by 52.8% year-on-year, among which the four major commercial banks increased by 50.7% and other commercial banks increased by 66. 1%. In addition, according to statistics, in 2006, the domestic intermediary business income of major commercial banks in China totaled 76,654.38 billion yuan, up 2 1.8% year-on-year. Among them, RMB 7.0/kloc-0.90 billion yuan, accounting for 92.2%. Foreign currency is equivalent to RMB 5965438+ billion, accounting for 7.8%. Among all kinds of intermediary business income of major commercial banks in China, the income from high-risk guarantee, commitment and transaction business is 6.36 billion yuan, accounting for 8.3%. The income from low-risk payment and settlement, banking and agency services was 69.74 billion yuan, accounting for 965,438+0.7%. The income from custody business increased the most, 1.9 times, of which the income from agency fund business increased by 4.4 times. The income from financing consulting business increased by 765,438+0.3%, the income from bank card business increased by 32.3%, and the income from agency business increased by 365,438+0.8%. In 2006, the net interest income of major commercial banks in China was 4349 1 100 million yuan, and the ratio of intermediary business income to net interest income was 1:5.7, which was slightly higher than the same period last year (1:5.8). In recent years, China's intermediary business has grown steadily and maintained a good momentum of development. [6]
Foreign situation
According to statistics, the intermediary business income of international commercial banks generally accounts for 40%-50% of the total income, and some banks account for more than 70%. The proportion of non-interest income in the total income of American banks increased from 18.8% in 2000 to 36.5% in 2005 and reached 42.90% in 2005. The non-interest income of European banks accounted for 26% of the total income in 2000 and reached 39% in 2005. The proportion of developed countries such as Britain rose from 28.5% to 4 1.5%. In 2000, among the annual income of 654.38+06 billion DM, the interest income of German commercial banks was only 5.5 billion DM, and nearly 654.38+00 billion DM came from intermediary business income. By 2005, German banks made a profit of DM 34 billion through intermediary business, accounting for 65% of the total profit. Take Deutsche Bank as an example. In 2005, its fee income increased by 42% on the basis of 52% in the previous year. In 2005, Deutsche Bank's operating income was 28.7 billion euros, of which the net interest income was 6.8 billion euros, and the fee income was11500 million euros, accounting for 40%, which was the largest source of income for the bank. [7]
4 role editing
Compared with the on-balance-sheet assets business of commercial banks, the intermediary business of commercial banks has the following functions.
First, it does not directly constitute the on-balance-sheet assets or liabilities of commercial banks, and the risk is small, which provides tools and means for the risk management of commercial banks. Commercial banks do not directly participate as creditors or debtors when handling intermediary business, and do not directly constitute on-balance-sheet assets or liabilities of commercial banks. Although some businesses will produce "contingent assets" or "contingent liabilities", compared with on-balance-sheet businesses, the risks are relatively small, which changes the asset-liability structure of commercial banks. In the intermediary business of commercial banks, the financial derivative business is relatively risky. However, there are some risks in this part of business, which also provides tools and means for commercial banks to manage their own risks, and improves their asset-liability management ability and risk prevention means.
Second, it provides a low-cost and stable source of income for commercial banks. Because commercial banks usually do not use or directly use their own funds when handling intermediary business, the operating costs of commercial banks are greatly reduced. Intermediary business income belongs to non-interest income and is not affected by changes in deposit interest rates and loan interest rates. Because of the small credit risk and market risk, the intermediary business generally will not suffer the loss of customer default, even if it loses, the impact is not great. In this way, intermediary business can bring low-cost and stable income sources to commercial banks, which is conducive to improving the competitiveness of commercial banks and promoting their steady development. Intermediary business income has become the main part of the operating income of western international commercial banks, accounting for 40% to 60%, and some banks even reach more than 70%.
The third is to improve the service function of commercial banks. With the accumulation of wealth and the enrichment of material life and cultural life, both enterprises and individuals have great demand for personal finance, corporate finance, consulting, foreign exchange trading and securities trading. [8]
5 existing problem editing
Compared with other foreign banks, China's modern banking system has not developed for a long time, and has experienced many twists and turns in the process of development. There is no mature and stable operating system and environment, and there is no market-oriented operation, which leads commercial banks to rely heavily on deposit-loan spreads to maintain high profit income, and simple and easy-to-get income has also caused great inertia to commercial banks. This series of factors also directly lead to the extremely low proportion of intermediary business income of commercial banks in China.
(1) Understand the problem. Knowledge is the forerunner of action. In a certain sense, the understanding of the importance of developing intermediary business by the senior management of commercial banks determines the development degree of intermediary business. Restricted by the system, vision, concept, way of thinking and practical experience, some domestic banks have insufficient understanding of the rapid development trend of international banking intermediary business, the accelerated pace of interest rate marketization and the pressure of commercial banks' survival and development after the full opening of financial markets, the imminent implementation of the new Basel Capital Accord, the impact of capital constraints on commercial banks' asset-liability business, and the fact that asset-liability business is more important than intermediary business. Intermediary business is still regarded as an auxiliary means to expand the traditional deposit and loan business, and there is not much thinking, research and investment in intermediary business, and the initiative and urgency of developing intermediary business are not strong.
(2) There are few types of intermediary business and single means. After more than ten years of development, although the variety of intermediary business of commercial banks in China has greatly increased, compared with foreign banks and market demand, the variety is still less. At present, the intermediary business of China's commercial banks is mainly limited to traditional settlement, remittance, collection and payment, credit cards, letters of credit, bills of exchange and other products, accounting for about 60% of the intermediary business types. However, there are still shortcomings in providing customers with high-quality and high-level services by using the information, technology and talents of commercial banks. The development of high-tech, high-value-added intermediary businesses such as consulting services, investment and financing, and derivative financial instruments trading is obviously insufficient, and the coverage is narrow, failing to form economies of scale; In particular, policies such as cash management, project financing, syndicated loan organization arrangement, and merger and acquisition consultants allow a low level of business development, resulting in more homogeneous products, lack of brand products and characteristic businesses, and weak profitability and competitiveness of individual products. The "Ericsson defection incident" in 2002 reflects from another aspect that in the face of changing customer needs, commercial banks will not be able to take the initiative in the market competition if they cannot provide a steady stream of innovative products, which will inevitably lead to the loss of high-quality customers. The problems existing in the intermediate business products of commercial banks not only expose the weaknesses of commercial banks, such as lack of innovation power and vitality, lagging product management, but also reflect the problems of complicated approval procedures, long approval period and coordination mechanism between supervision departments to be further improved.
(3) The operation is not standardized, and there is a lack of complete and systematic scientific management. At present, most domestic commercial banks do not have specialized institutions to systematically manage the development and operation of intermediary business, and lack long-term planning, coordination and cooperation. In operation, most commercial banks are limited to issuing intermediary business completion plans, but there is no perfect management method and feasible operating rules on how to strengthen the organization of intermediary business development and improve the development level. The lack of manpower, material resources and financial resources often makes grass-roots banks in a passive situation in the development of intermediary business market. In addition, the management mode of intermediate business is mostly split mode, and the management of intermediate business is completed by different departments respectively. This decentralized management, and each department often adopts different management methods and different assessment objectives and incentive measures, is not conducive to information communication, is not conducive to improving management efficiency, is not conducive to the formation of scale effect, and promotes the overall development of intermediary business.
(D) Irrational competition is prominent, and low-level competition is more common. Irregular competition in the same industry has hindered the progress of intermediary business of commercial banks to some extent, which is an urgent problem to be solved. With the intermediary business increasingly becoming an important field of competition for commercial banks, various behaviors have occupied the market and scale, and the practice of lowering the charging standard, not charging or even exceeding the account has been adopted. You are high and low, you are free, and you are free to post, which seriously threatens the development of the intermediary business market. The most direct consequence is that the intermediary business volume is not proportional to the income, and the bank makes a lot of money and loses a lot of money. In addition, in the innovation of intermediary business, many commercial banks pursue "takenism", adopt the following strategy, wait for other banks to develop new products, and then copy and imitate them to keep up with the introduction of similar products, supplemented by low-price strategy, which harms the interests of other commercial banks.
(5) The problem of unbalanced development. Judging from the situation, the development level of intermediary business of domestic banks is uneven, with great contrast. First, the development between regions is unbalanced, with the eastern region developing rapidly and the central and western regions lagging behind; Second, large state-owned or state-controlled banks and medium-sized joint-stock commercial banks have developed rapidly, while small banks have lagged behind; Third, there is a big gap between Chinese banks and foreign banks in China. If effective measures cannot be taken to solve these problems, the gap between the eastern region and the central and western regions, between large banks and small banks, and between Chinese banks and foreign banks will continue to widen, which will not be conducive to the improvement of the overall level of intermediary business in China's banking industry.
(six) the contribution to the operating efficiency is still insufficient. At present, the proportion of intermediary business income in the operating income of commercial banks is still obviously low, and its contribution to the overall profitability of commercial banks is still limited. In 2004, among the four major banks, only China Bank accounted for 14% of the net operating income, and the other three banks were all below 10%. Some emerging joint-stock commercial banks may have a slightly higher proportion of intermediary business income because of their small assets, but overall they are still relatively low, which is far from foreign-funded commercial banks.
(7) Inadequate understanding and measurement of intermediate business risks. Intermediary business not only helps banks improve efficiency, profitability and service level, but also brings various risks to banks, such as credit risk, market risk, operational risk, legal risk, reputation risk and technical risk, which need to be strictly guarded against. Especially at present, banks still lack management experience in many intermediary businesses and have insufficient understanding of potential risks. Judging from the scope of intermediary business defined in the Law on Commercial Banks and the Interim Provisions on Intermediary Business of Commercial Banks, most of the businesses are low-risk businesses, except the guarantee and commitment business and the financial derivatives trading business, but low risk does not mean no risk. From the supervision practice in the past few years, the risks of intermediary business are mainly manifested as policy risk, operational risk, associated risk and reputation risk. For example, the CBRC has accepted all aspects of the personal products and personal wealth management products launched in cooperation with securities companies and other intermediaries, and has given risk warnings.
(8) Lack of professional talents and scientific and technological support. Intermediary business involves a wide range of fields and knowledge, and needs a large number of high-level and compound talents. At present, China's commercial banks do not have enough support for the development of intermediary business in terms of professional talents, technical equipment and technical means. They lack efficient information management systems and supporting equipment, as well as compound talents who are familiar with banking, computers, international finance, investment, securities and other professional knowledge. Some employees have outdated knowledge, low professional quality, incomplete marketing skills and low bargaining power, which restricts the promotion of new products and the improvement of the service quality of intermediary business. [9]
6 interim provisions editor