Characteristics of intermediary business in commercial banks

Large degree of freedom and poor transparency.

Different from the traditional asset-liability business, the intermediary business of commercial banks is strictly restricted by financial laws and regulations. As long as both parties agree, an agreement can be reached. Intermediary business can be traded on or off the market.

Most of the intermediary businesses of commercial banks 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.