Category: Business/Financial Management >> Banking

Analysis:

Problems:

1) Understand the problem. Awareness is the precursor to action. In a certain sense, the degree to which a commercial bank's senior management understands the importance of developing intermediary business determines the degree of development of the bank's intermediary business. Restricted by systems, vision, concepts, ways of thinking and practical experience, some domestic banks have insufficient understanding of the rapid development trend of international banking intermediary business and the survival and development faced by commercial banks after the pace of interest rate liberalization accelerates and the financial market is fully opened. Insufficient understanding of the pressure of the new Basel Capital Accord and the imminent implementation of the Basel Capital Accord and insufficient understanding of the impact of capital constraints on the asset and liability business of commercial banks. They emphasize asset and liability business and ignore intermediary business. They still regard intermediary business as an expansion of traditional deposit and loan business. There is not much thought, research and investment in intermediary business, and the initiative and urgency to develop intermediary business are not strong.

(2) There are few types of intermediary businesses and single methods. After more than ten years of development, although the intermediary business varieties of Chinese-funded commercial banks have increased significantly, compared with foreign banks, the varieties are still smaller compared with market demand. The existing intermediary businesses of Chinese-funded commercial banks are mainly limited to traditional settlement, exchange, collection and payment as well as credit cards, letters of credit, bills and other products, which account for about 60% of the intermediary business types. However, there is still a lack of use of commercial bank information, technology and talents to provide customers with high-quality and high-level services; high-tech, high-value-added intermediary businesses such as consulting services, investment and financing, and derivative financial instrument transactions The development is obviously insufficient, the coverage is narrow, and economies of scale cannot be formed; especially cash management, project financing, syndicated loan organization arrangements, acquisition and merger consulting and other businesses with policy permission and large market demand have a low development level, resulting in homogeneous products There are many, there is a lack of branded products and specialty businesses, and the profit-making ability and competitiveness of individual products are not strong. The "Ericsson defection incident" that occurred in 2002 reflected from another aspect that in the face of increasingly changing customer needs, if commercial banks cannot provide a steady stream of innovative products, they will not be able to take the initiative in market competition, which will inevitably lead to the loss of high-quality customers. drain. The current problems with intermediary business products of commercial banks not only expose the weaknesses of commercial banks such as insufficient innovation power and vitality, and lagging product management, but also reflect the problems in current bank supervision, such as complex approval procedures, long approval cycles, and coordination among regulatory departments. The mechanism needs to be further improved, etc.

(3) Irregular operation and lack of complete and systematic scientific management. At present, most domestic commercial banks do not have specialized agencies to systematically manage the development and operation of intermediary business, and lack long-term planning, coordination and cooperation. In operation, most commercial banks are limited to issuing intermediary business completion plans. However, they do not yet have a complete set of management methods and practical operating procedures on how to strengthen the organization of intermediary business development and improve the level of development. In terms of human, material, and Insufficient financial investment often leaves grassroots banks in a passive position in developing the intermediary business market. In addition, the management model of intermediary business is mostly a split model, and the management of intermediary business is completed by different departments. This kind of decentralized management, and each department often adopts different management methods, assessment targets and incentive measures, is not conducive to information communication, improves management efficiency, and is not conducive to the formation of scale effects. Promote the development of intermediary business.

(4) The phenomenon of irrational competition is prominent, and low-level competition is relatively common. Irregular horizontal competition has hindered the progress of commercial banks' intermediary business to a certain extent. This is an issue that needs to be solved urgently. As intermediary business has increasingly become an important area of ??competition among commercial banks, in order to occupy the market and increase scale, various banks have adopted the practice of lowering charging standards, no fees or even discounts. If you are higher, I will be lower. If you are lower, I will waive it. This seriously threatens the development of the intermediary business market. Its most direct consequence is that the volume of intermediary business is out of proportion to its income, and banks lose money while making money. In addition, when it comes to intermediary business innovation, many commercial banks pursue a copy-cat mentality and adopt a follow-up strategy, waiting for other banks to develop new products, then plagiarizing and imitating them, launching similar products, and supplementing them with low-price strategies, which harms other commercial banks. interests.

(5) The problem of unbalanced development.

Judging from what we know, the development levels of intermediary business among domestic banks are uneven and the contrast is large. First, regional development is unbalanced, with the eastern region developing relatively quickly and the central and western regions lagging behind; second, large state-owned or state-controlled banks and medium-sized joint-stock commercial banks develop rapidly, while small banks develop relatively lagging; third, There is a big gap between Chinese banks and foreign banks in China. If effective measures cannot be taken to address these problems, the gap between the eastern region and the central and western regions, large banks and small banks, and Chinese banks and foreign banks will continue to widen, which will be detrimental to the improvement of the overall level of the intermediary business of my country's banking industry. .

(6) The contribution to operating efficiency is still insufficient. At present, the proportion of intermediary business income of commercial banks in operating income is still significantly low, and its contribution to the overall profitability of commercial banks is still limited. In 2004, among the four major banks, only Bank of China's intermediary business accounted for 14% of net operating income, while the other three banks were all below 10%. Due to their smaller asset sizes, some emerging joint-stock commercial banks may have a slightly higher proportion of intermediary business income, but overall, it is still relatively low, with a large gap compared with foreign commercial banks.

(7) Insufficient understanding and measurement of intermediary business risks. While intermediary business helps banks improve efficiency, profitability, and service levels, it also brings various risks to banks, such as credit risk, market risk, operational risk, legal risk, reputation risk, technology risk, etc., which requires Take strict precautions. Especially at present, banks still lack management experience in many intermediary businesses and have insufficient understanding of potential risks. Judging from the scope of intermediary business determined by the "Commercial Bank Law" and the "Interim Regulations on Intermediary Business of Commercial Banks", except for guarantee commitment business and financial derivatives trading business, most businesses are low-risk businesses, but low risk does not mean no risk. . Judging from the regulatory practice in the past few years, intermediary business risks mainly include policy risks, operational risks, related risks and reputation risks. For example, the China Banking Regulatory Commission has accepted reports from various aspects and issued risk warnings for individual products and financial products developed in cooperation with intermediaries such as securities companies.

(8) Insufficient professional talents and technological support. Intermediary business involves a wide range of fields and knowledge, and requires a large number of high-level and compound talents. At present, my country's commercial banks do not have enough support for the development of intermediary business in terms of professional talents, technical equipment and technical means. They lack efficient information management systems and supporting equipment, as well as those who are familiar with banking business, computers, international finance, Comprehensive talents with professional knowledge in investment, securities, etc. Some personnel have aging knowledge, low professional quality, incomplete marketing skills, and low bargaining power, which restricts the promotion of new products and the improvement of intermediary business service quality.

Solutions:

With the acceleration of financial globalization, especially when my country’s financial market will be fully opened to the outside world after December 11 next year, domestic commercial banks, regulatory authorities, and the banking industry The association should adopt a broader vision and a more positive attitude, make great efforts, put in real effort, focus on management and innovation, and comprehensively promote the faster and better development of the intermediary business of commercial banks.

(1) Improve understanding of the development of intermediary business and adjust strategic priorities. What is the key to developing intermediary business? I think the most important thing for the senior management is to improve their understanding of intermediary business and put the development of intermediary business at a strategic level to ensure the sustainable and healthy development of the bank. It is necessary to truly realize that the development of intermediary business is an important means for commercial banks to improve profitability, improve customer structure, and enhance the bank's core competitiveness in the future, strengthen leadership of intermediary business, and truly establish the "troika" of asset business, liability business, and intermediary business. The strategy of parallel development has formed a new idea of ??using the advantages of traditional business to drive the development of intermediary business, and using the development and expansion of intermediary business to support and promote the consolidation and development of traditional business, so as to grasp the intermediary business seriously.

(2) Standardize the internal management of banks and optimize the intermediary business management department. Each commercial bank should, based on the actual situation, integrate and restructure the existing intermediary business management departments, establish a specialized agency to centrally manage the intermediary business, be uniformly responsible for formulating the management systems, methods and operating procedures for the intermediary business, and be responsible for the types of intermediary business throughout the bank. Research, development, design and promotion, daily management and coordination of intermediary business, to ensure the steady and healthy development of intermediary business.

(3) Accelerate product innovation and strictly guard against banking risks.

If domestic banks want to survive and develop in the competition, they must increase their efforts in product research and development. It is necessary to be market-oriented, break through the business scope and model of traditional business, fully tap the potential market demand, study market consumer psychology, analyze market development trends, and actively develop new intermediate business products. We must take risk prevention as the premise, adhere to the principles of differentiated treatment, strengthen internal control, and fully disclose, and incorporate intermediary business into the bank's overall risk management system. For credit risks, a scientific and effective rating system should be established, and the ability to resist risks should be improved in accordance with the regulatory requirements of "improving classification accuracy, raising sufficient provisions, making profits, and meeting capital adequacy ratio standards"; for market risks, the risk resistance should be improved in accordance with derivatives In accordance with the requirements of product transaction management measures and market risk management guidelines, establish and improve a management system for identifying, measuring, monitoring and controlling relevant risks; for operational risks, banks should further improve and implement relevant rules and regulations while actively cultivating a compliance culture. , improve business processes and information systems, and increase efforts to prevent operational risks. In the process of developing intermediary business, banks should fully consider their ability to withstand various risks, control capabilities and capital strength, truly maximize their income through the development of intermediary business, and avoid blindly following the trend and violating the original intention of development. .

(4) Strengthen supervision and encourage and support banks to carry out intermediary business. The rapid development of intermediary business has brought new issues and challenges to supervision. Banking regulatory authorities must strengthen regulatory initiative, organically combine the development of intermediary business of commercial banks with the strengthening of supervision, strengthen overall planning and research, reduce disorderly competition, guide the healthy development of intermediary business of commercial banks, and effectively resolve various risks. purpose.

When the China Banking Regulatory Commission was established, promoting financial stability and financial innovation was one of the good regulatory standards. To this end, the "Interim Measures for the Management of Service Prices of Commercial Banks", "Interim Measures for the Management of Derivatives Transaction Business of Financial Institutions", "Guiding Opinions on the External Marketing Business of Commercial Banks", and "Guidelines for the Market Risk Management of Commercial Banks" have been formulated and promulgated. A series of departmental regulations have also been jointly formulated and promulgated with relevant departments to formulate and promulgate the "Administrative Measures for the Pilot Program of Commercial Banks to Establish Fund Management Companies", the "Administrative Measures for the Pilot Program of Credit Asset Securitization", etc., to provide policy and legal support for commercial bank business innovation in a timely manner. Currently, in order to better promote the development of intermediary business of commercial banks and effectively prevent risks, the China Banking Regulatory Commission has prepared to establish a Bank Innovation Business Cooperation Department to provide organizational guarantees for the development of intermediary business of commercial banks and will further improve the relevant policies and regulations system , improve market access and continuous supervision, and ensure the steady development of bank intermediary business.

(5) Strengthen cooperation with peers and improve industry collaboration mechanisms. The China Banking Association and local banking associations must actively play their role in strengthening self-discipline and coordination of banks’ intermediary business. This year, the China Banking Regulatory Commission promulgated the "Banking Association Work Guidelines", which stipulates that the association's work this year will focus on standardizing commercial bank intermediary business charges, safeguarding banks' legitimate rights and interests, maintaining market order, promoting fair competition, and improving commercial bank retail customer counter services and self-service Service levels and disclosure of counterparty risks in bank lending play a role. It is hoped that the staff of the association will actively perform the association's self-discipline, ***, coordination, service, publicity and other functions, follow the requirements of the "Banking Association Work Guidelines", adapt to the needs of banking industry reform and development, and combine with the Banking Association's ongoing " The China Banking Industry Self-Discipline Convention, the *** Convention, the China Banking Industry Civilized Service Convention and the formulation of banking industry standards have begun to standardize and promote the development of intermediary business, and assist the banking regulatory authorities in maintaining financial market operations. order.

(6) Pay attention to talent cultivation and improve the quality of professionals. Carrying out intermediary business has high requirements for the quality of professionals. Therefore, it is necessary to strengthen the training of intermediary business personnel, strictly enforce job standards, improve the level of intermediary business services, ensure that the legitimate rights and interests of consumers are protected, and enable banks to prevent credit risks to the greatest extent. , market risk, operational risk, legal risk and reputation risk. Regarding the training of regulatory personnel, the China Banking Regulatory Commission will also continue to adopt various methods to tap domestic and foreign resources, increase the intensity of knowledge updating and skills training for regulatory personnel, and continuously improve the professional level of supervision to adapt to the impact of financial innovation on supervision. Require.