What are the characteristics and shortcomings of the intermediary business of commercial banks?

It is characterized by its shortcomings.

1. The degree of freedom is large.

Unlike traditional asset-liability business, intermediary business is strictly restricted by financial regulations. In general, an agreement can be reached as long as both parties to the transaction agree. Intermediate businesses can be traded on the floor or over-the-counter.

The vast majority of intermediary businesses do not require corresponding capital reserves, which leads to the excessive expansion of the entrusted and proprietary intermediary businesses of some commercial banks, thus bringing certain potential risks to commercial banks.

2. Poor transparency.

Most of the intermediary business is not reflected on the balance sheet, many businesses cannot be truly reflected in the financial statements, and it is difficult for external users of financial statements such as shareholders, creditors and financial regulatory authorities to understand the entire business scope of banks and evaluate their operating results, and the transparency of operations has declined, which has affected the market's correct and comprehensive judgment of the potential risks of banks, and is not conducive to the effective supervision of the supervisory authorities.

3. Risk diversification.

Transaction risk is spread across the bank's various businesses. The intermediary business involves multiple 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.

4. High leverage.

The so-called high leverage is also "small and profitable". This mainly refers to the characteristics of financial derivatives business, foreign exchange margin trading and other businesses. For example, a bond investor can put out several bond contracts worth $1 million in the financial market as long as he puts out $100,000.

Due to the role of high leverage, engaging in financial derivatives business transactions has both the possibility of making big profits and big losses.

Compared with the on-balance sheet assets business of commercial banks, the intermediary business of commercial banks has the following functions.

1. The on-balance sheet assets or liabilities that do not directly constitute commercial banks are less risky, providing tools and means for commercial banks to manage their risks.

When a commercial bank handles intermediary business, it does not directly participate as a creditor or debtor, and does not directly constitute the on-balance sheet assets or liabilities of the commercial bank; although some businesses will produce "contingent assets" or "contingent liabilities", the risk is smaller than that of the on-balance sheet business, which has changed the asset-liability structure of the commercial bank.

In the intermediary business of commercial banks, the risk of financial derivatives business is relatively large. However, while this part of the business has certain risks, it also provides tools and means for commercial banks to manage their own risks, and improves the ability of commercial banks to manage their assets and liabilities and means of risk prevention.

2. It provides low-cost stable income for commercial banks. Since commercial banks usually do not use or directly use their own funds when handling intermediary business, the operating costs of commercial banks have been greatly reduced. Intermediate business income is non-interest income and is not affected by changes in deposit and loan interest rates.

Due to the small credit risk and market risk, the intermediary business generally does not suffer the loss of customer default, and even if it is lost, the impact is not large. In this way, intermediary business can bring low-cost and stable income to commercial banks, which is conducive to improving the competitiveness of commercial banks and promoting the steady development of commercial banks.

Intermediate business income has become the main component of the operating income of Western international commercial banks, accounting for 40% to 60%, and some banks even reach more than 70%.

3. The service functions of commercial banks have been improved. With the accumulation of wealth, the increasing abundance of material life and cultural life, whether it is an enterprise or an individual, there is a greater demand for personal finance, corporate finance, consulting, foreign exchange trading, ** trading and other aspects.

Hello! First, it does not directly constitute the on-balance sheet assets or liabilities of commercial banks, and the risks are relatively small, which provides tools and means for commercial banks to manage their risks.

Second, it provides low-cost and stable income for commercial banks.

Third, the service functions of commercial banks have been improved.

It only represents a personal opinion, don't spray if you don't like it, thank you.

Summary. Dear, I'm glad to answer your <>

The main characteristics of the intermediary business of commercial banks are as follows:1Low Risk:

Compared with traditional businesses such as loans, banks bear less risk in intermediary business; 2.High yield: The service fee of the intermediary business is higher, so it can bring higher income to the bank; 3.

Competitive pressure: Intermediate business is not only the exclusive domain of the banking industry, but also competitors include other financial institutions such as ** companies, trust companies, insurance companies, etc., <>

<> please briefly describe the main features of the intermediary business of commercial banks.

Dear, I'm glad to answer your <>

The main characteristics of the intermediary business of commercial banks are as follows:1Low Risk:

Compared with traditional businesses such as loans, banks bear less risk in intermediary business; 2.High yield: The service fee of the intermediary business is higher, so it can bring higher income to the bank; 3.

Competitive pressure: Intermediate business is not only the exclusive field of banks and consumer industry, but also competitors include other financial institutions <>such as ** companies, trust companies, insurance companies, etc

<> Kiss expands as follows<>

The intermediary business of commercial banks refers to a variety of Jinji financial service businesses in addition to the traditional deposit and loan business, such as underwriting, trust services, leasing business, insurance, and sales, in short, the characteristics <>of the intermediary business of commercial banks are complex and diverse, especially in the current financial market environment, with the emergence of various financial innovations, its characteristics are constantly changing

<> illustrates the importance of the development of intermediary business to the development of commercial banks.

The significance of intermediary business development to the development of commercial banks is as follows: 1Diversification:

Through the development of intermediary business, commercial banks can diversify their business and reduce the risk of over-reliance on deposit and loan business to the bank's profitability. 2.Optimize the quality of assets: By carrying out intermediary business, commercial banks can reallocate assets and liabilities, improve asset quality, and reduce deposit burdens, thereby improving the bank's asset structure and liability structure. 3.

Enhance competitiveness and profitability: Intermediate business can bring higher profit margins to commercial banks, which is more attractive than traditional deposit and loan business, and can enhance the competitiveness and profitability of commercial banks.

Please indicate how the development of the bank's intermediary business can be improved through the strengthening of marketing management.

The following aspects can be considered to improve the development of bank intermediary business:1Enhance your understanding of customer needs:

Commercial banks should understand the needs and preferences of customers through various channels, so as to better tailor the corresponding intermediary business products and services for the customers of Xiaohong; 2.Optimize the design of products and services: Commercial banks should continuously optimize the product and service design of the intermediate rourbe business according to customer needs and market changes, so as to maintain market sensitivity; 3.

Strengthen marketing: Commercial banks need to use a variety of marketing methods, such as publicity, network promotion, advertising, etc., to increase the marketing of intermediate business and improve consumer attention and awareness.

The characteristics of the intermediary business of commercial banks include the following:

1.High profits: Intermediate businesses usually require a small capital investment, and each transaction incurs corresponding intermediary fees, so it can usually provide high profit margins and high yields.

2.Low risk: Since the intermediary business of commercial banks does not necessarily need to directly participate in capital operation and risk returns, its risk degree is relatively low and the process is relatively simple.

3.Improve customer loyalty: Commercial banking intermediary business can better understand the needs and requirements of customers, provide customers with better and more detailed services, and win the trust and loyalty of customers.

4.Improving competitiveness: By launching innovative financial products and services, commercial banks are able to maintain a competitive edge in a highly competitive market and enhance their sustainable development capabilities.

Commercial bank intermediary business refers to a financial service that aims to provide customers with financial products and services in order to obtain fee income. Intermediate business is different from traditional savings, loans, remittances and other businesses that directly provide financial products and services to customers, but refers to banks providing financial services in a legal and standardized way, and helping customers obtain benefits or complete financial needs by using their own technology, strength and resources.

In short, as an important financial service activity, the intermediary business of commercial banks can increase the bank's profits and improve customer satisfaction, and it is also a strong guarantee for the sustainable development of the bank. <>

1.Off-balance sheet businesses do not own their own assets.

Intermediate business is off-balance sheet business, which does not occupy the bank's own funds, frees the bank from the shackles of the established scale of assets and liabilities, promotes the progress of its technology and service means, and improves the bank's own competitiveness.

In the process of operating traditional intermediary business, banks act as intermediaries to handle business for customers, such as consulting business. Clients revealed to Shangli Ye Bank that they wanted to know about certain companies, financial products, technologies, services, management, credit status, etc. , while banks provide customers with the information they want, relevant data, operational plans, feasibility reports, etc.

Through their unique advantages, so they do not occupy their own capital.

2.There are many types of intermediary businesses.

The traditional intermediary business has fewer types and a narrower scope, mainly including trust, custody, insurance, exchange settlement, exchange, etc.

3.The pricing of the intermediary business is not mature enough.

At present, the intermediary business of state-owned banks is at a stage of rapid development. With the proliferation of product categories, there has been a phenomenon of disorderly product pricing. The cost of developing and promoting intermediate products also depends on the characteristics of customer demand, market demand, and the impact on the assets and liabilities of commercial banks.

Among them, the key to the pricing of intermediary business products lies in the transparency of information, while the intermediary business of China's commercial banks has the problem of information asymmetry between the two sides of the market. Let's analyze it with the relevant knowledge of game theory.