What is the background of the internationalization of commercial banking business and its development trend?

I. The current situation of China's bank intermediary business innovation

In recent years, "bank intermediary business" has become an innovative field of fierce competition among commercial banks. With the deepening of the reform of China's financial system and social and economic development of financial demand, China's commercial banks are now focusing more and more on the innovation of intermediary business, and gradually recognize the importance of intermediary business as one of the three pillars of commercial banks, and actively explore new ways to provide services, and advocate a new service concept. Each commercial bank utilizes its existing advantages in terms of capital, technology, network and settlement to develop various intermediate businesses. At the same time, they have done a lot of work in terms of institutional setup, organizational construction, system construction, monitoring and management, personnel training, etc., so that the intermediary business of China's commercial banks has made a good start and obvious progress. However, the existing problems are also more prominent.

1, intermediate business area is small, narrow scope, in the bank's total income accounted for a low percentage. In the international arena, the intermediate business has become one of the main channels of modern commercial banks to generate income. 1992, the German bank intermediate business income accounted for 65% of the total profit: France Lyonnais Bank intermediate business income is 77% of the total profit: British Barclays Bank intermediate business profits can make up for 73% of the total business expenditure, the United States Citibank deposit and loan business brings only 20% of the total profit, the profit. Acceptance, credit investigation, enterprise credit rating assessment, asset evaluation business, personal financial consulting business, forward foreign exchange trading, foreign exchange futures, foreign exchange options and other intermediary business has brought 80% of its profits. in the mid-1990s, Singapore, Hong Kong and other Asia-Pacific commercial banks in the middle of the income of intermediary business also reached 30%. The intermediate business of China's commercial banks has been at a low level, basically limited to some traditional agency business, involving a small number of enterprises, small amount, poor quality, low efficiency, intermediate business income accounted for a very low proportion of all income. In 1999, for example, Bank of China accounted for 6.87%, Construction Bank 4.19%, Industrial and Commercial Bank of China 1.28% and Agricultural Bank of China 1.21%. Only Everbright Bank (20.30%) and Guangdong Development Bank (27.31%) have higher comparisons, which are close to the international level (Source: Calculations based on pages 440-469 of the 2000 China Financial Yearbook).

2. Intermediate business is mostly a free lunch. In order to compete for customers, you charge less, I do not charge, some also either explicitly or implicitly "backward", coupled with the current policy that many intermediate business is not allowed to charge, resulting in a large number of intermediate business is a free lunch. For example, the bank agency business (collection, payment, agency, sales), involving charges only the bank's safe deposit box business and the sale of traveler's checks, agency collection, agency payment and other businesses are free of handling fees.

3. The intermediary business products that have been launched are few in variety, low in level, and not very perfect in function. Labor-type, low-yield business varieties, high knowledge content, high-yield intermediary business varieties, mostly relying on the bank's network advantage, the traditional asset and liability business and other conditions, rarely use the bank's credibility, information, technology, human resources to provide customers with high-quality, high-level intermediary business services.

Second, the factors affecting the innovation of China's banks intermediate business

What is tying the hands of the bank? Why is the foreign so valued intermediate business in China is struggling? We believe that the constraints on China's bank intermediate business innovation factors are:

1, policy factors. China's current policy has not been an accurate positioning of commercial banks. What is a commercial bank? To this simple question, not only we the general public did not figure out, is the government's senior management also did not figure out. Let us take a look at the functions of a modern commercial bank: savings function, credit function, payment function, cash management function, investment or planning function, agency function, fiduciary function, monetary policy transmission function, guarantee function, brokerage function, and investment banking function. Thus, commercial banks are financial services firms that provide the widest range of financial services, including credit, savings, and payment services, and perform the widest range of financial services functions in the economy. The main function of commercial banks as financial service enterprises is to produce and sell financial products to the society. Under the conditions of a market economy, the production and sale of financial products must be remunerated, that is to say, they must be paid services, not unpaid services. However, at present, when commercial banks market financial products, a large number of them are non-commercial operations because the existing policy regulations do not allow banks to charge fees, and commercial banks do not have the right to set prices for financial products. Factories have the right to set the prices of their products, shopping malls have the right to set the prices of their goods, and the postal, telecommunications, transportation and other service industries have the right to set prices and have implemented a price filing system, except for commercial banks which do not have the right to set prices. Commercial banks are not a monopoly, but a highly competitive service industry whose prices should be determined by the financial market through competition, but in fact they are all set by the People's Bank of China or other regulatory authorities. And up to the present day, the right to decide on fees and charges has not been liberalized. For example, loans are only allowed to charge interest, prohibited to charge any other fees: deposits, regardless of the balance of the number of interest is not allowed to charge fees, and so on. On the contrary, those who are not enterprises but rely on financial allocations of the management is more and more charges, the formation of "the charges are not allowed to charge, should not be allowed to charge fees on the side of the oddities". Other social benefits such as welfare housing, public health care, pension insurance, etc. have been canceled or from the dark to the light, only commercial banks are still assuming the role of "social welfare providers", "free lunch" will continue to open. Therefore, the main factor affecting the innovation of commercial banks' intermediary business is not other than the current policy. Commercial banks to provide unpaid services for a long time, not only the commercial banks can not improve their own efficiency, but also to make the public form a habit of thinking: no charges should be, charges should not be, is a violation of the law on the protection of consumer rights and interests.

2, talent factor. Domestic high-quality practitioners are not many. This has become China's banking industry can not carry out high-tech varieties of business "bottleneck". For example, financial advisers, the requirements of banking, insurance, securities, real estate, foreign exchange, domestic and foreign economic situation have a more comprehensive grasp of this area of talent in China's financial sector is very scarce.

3, technical equipment factors. Intermediate business innovation needs the support of technical equipment. For example, to improve the efficiency of funds remittance and clearing, to carry out bank-wide consulting and wealth management services, etc., all need to centralize the data processing of the banking system, otherwise the business will be constrained. At present, there are obvious deficiencies in technical equipment, such as mainframe processing capacity, business software processing efficiency, business software scalability, regional business development characteristics, and management capabilities are more prominent.

Three, innovation in China's commercial banks intermediate business should take measures

1, the release policy, giving commercial banks the power to develop financial product prices. In all aspects of the business scope of operation, charges, charges, etc., to allow Chinese commercial banks in accordance with international practice, for all Chinese and foreign banks to create a fair competition and cooperation in the legal environment.

2. Establish an intermediate business operation system that suits the market demand. It is necessary for all commercial banks to reconsider the setting of internal functional institutions in accordance with market orientation, to establish independent organizations specializing in the management of intermediary business from top to bottom, and to break the old framework of setting up functional departments centered on deposits and loans and based on products. For example, based on the settlement business department, the intermediary business department was established to comprehensively manage the intermediary business of the company, the retail business department and the whole system.

3. Improve the internal management and risk control system of intermediate business. According to the "Interim Provisions on Intermediate Business of Commercial Banks", the original business varieties should be adjusted with the functional departments for the integration of business management system and operational norms, so that the scope of authority is clearer, the process is more scientific, and the risk prevention is more effective, in particular, we should continue to pay attention to the control and prevention of the risks of high-risk business varieties such as letters of credit, acceptance bills and derivative financial products.

4, innovative intermediate business development mechanism in line with market demand. Based on the changes in the market environment, a reasonable intermediate business development plan. Commercial banks according to the characteristics of the intermediate business decentralized operation and the current situation, combined with their own advantages, in the intermediate business operated by the varieties, the market and the development prospects on the basis of a careful analysis, it is necessary to implement the intermediate business of the regional positioning of the development strategy, to determine a reasonable stage of development of the intermediate business, and on the basis of the formation of scientifically sound intermediate business medium- and long-term development planning. Secondly, it is necessary to strengthen the development of new products and highlight the development of key intermediary business products required by the market. Thirdly, we focus on the training and introduction of intermediate business talents. Through the combination of domestic specialized training and foreign exchange training, theoretical seminars and practical training to strengthen the intermediate business research and development, management and operation of a full range of personnel training, especially to strengthen the development of intermediate business development of the training and introduction of senior personnel to improve the development of intermediate business competitiveness, and to concentrate their own intermediate business comparative advantage in the industry competition.

5, improve the market demand for scientific and technological support system. The commercial banks should be in the realization of the collection and payment of clearing on the basis of a large centralized, and gradually set up and intermediate business development focus on matching the technology support platform, improve the key business such as wealth management, consulting services, banking card cooperation and other key business of electronic operation of the construction of the hard and soft environment, will be the expansion of the distribution network to the customer's desk or home, to improve the level of intensive bank card business, improve the efficiency and quality of service in order to strive for and stabilize the large number of The customer.

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