What does intermediate business mean

Intermediate business refers to the non-interest income business that does not constitute the bank's on-balance sheet assets and liabilities. Intermediary business mainly includes financial management business that charges service fee and difference of buying and selling price on behalf of customers, consulting service, agent buying and selling of funds and bonds, agent buying and selling of capital products on behalf of customers, agent fee, custody, payment and settlement and other services. It is the business that forms the bank's non-interest income. Intermediary business, compared with traditional business, has the following characteristics: does not use or does not directly use the bank's own funds; does not bear or does not directly bear the market risk; to accept customer entrustment as a prerequisite for customers to handle the business; fourthly, to collect the service fee (fees, management fees, etc.), quasi to go to the spread of the way to obtain income; fifthly, the types of multiple, wide range, the proportion is increasing. Bonds are issued by the issuer to raise funds, pay a certain percentage of interest at an agreed time, and repay the principal at maturity of the securities. Its essence is the certificate of debt, with legal effect, the issuer is usually the government, enterprises, banks and so on. Government bonds are guaranteed by government tax revenue, thus the risk is the smallest, but the return is also the smallest. Corporate bonds have the highest risk and correspondingly higher returns. Bond buyers or investors and the issuer is a debt relationship between the bond issuer that is the debtor, investors (bond buyers) that is the creditor.