What is the cooperation between banks and securities companies? Why is it launched? What are the problems in its development?

To a certain extent, the cooperation between banks and securities companies is the integration of money market and capital market, and it is also a kind of business cooperation between banking and securities industry in some way.

Reasons for cooperation between banks and securities companies:

Internal reasons:

1, bank

From the perspective of commercial banks, China's commercial banks are still relatively traditional in terms of system, operation mechanism, business model and financial tools, and their innovation ability is obviously insufficient, which lags far behind the pace of economic system reform and cannot meet the diversified and personalized financial service needs of residents.

2. Securities industry

From the perspective of the securities industry, the development of the securities market can not be separated from the promotion of funds, and the cooperation between banks and securities companies provides a new source of financing for the self-operated business of securities companies.

At this time, China financial industry urgently needs to promote the cooperation between banks and securities companies. The reform of state-owned commercial banks is undoubtedly an important part of China's financial system reform, which is of great significance for improving the efficiency of bank funds and reducing financial risks.

External reasons:

With China's accession to the WTO, China will allow foreign banks to handle RMB business for China enterprises in two years, allow foreign banks to provide RMB business for domestic residents in five years, and allow foreign banks to engage in foreign currency investment business. Universal foreign banks or financial groups will simultaneously apply to the People's Bank of China, the China Securities Regulatory Commission and the China Insurance Regulatory Commission for banking, securities and insurance business licenses. In the next few years, these foreign banks, known as "financial department stores", will compete fiercely with Chinese banks in many aspects, such as high-quality talents and customers, and occupy a large market share in China's commercial, wholesale and retail businesses; However, the competitiveness of Chinese banks is inherently insufficient and has been at an obvious disadvantage. If we don't untie it and speed up the cooperation between banks and securities companies, it will undoubtedly only make Chinese banks in a more unfavorable position in the cruel market competition.

The question is:

Bank-securities cooperation is still in the exploratory stage. For example, at present, China does not have the conditions for mixed operation, and the cooperation mode between banks and securities companies is relatively primary, mostly on the surface, which requires a series of systems, mechanisms, systems and laws to regulate the market.