商业银行中间业务英语原文

1、Intermediate business of commercial banks innovation: the international experience and enlightenment Cheng HuaAbstract：Intermediate businessIs the basis and the origin of the commercial bank, and the new profit growth point of commercial Banks. In this paper, the west commercial bank intermediary bu

2、siness innovation motivation and current situation, then explains its enlightenment significance to our country.Key words：Intermediate business; Financial innovation; Mixed managementIntermediate business innovation, and by regulators or commercial Banks as the main body, intermediate business in co

3、mmercial bank system, internal management, financial innovation of the market, products and technologies, etc. Commercial bank middle business innovation as an important part of financial innovation, is developed in practice, its theoretical basis mainly comes from the modern theory of financial inn

4、ovation, which is representative of constraint induced type financial innovation theory (w. l. S lb e I r), avoid sex (E.J.K a n e) financial innovation theory, transaction cost theory (J.R.H ek I S: j. ieh a n S), wealth theory (s. I.G r e e n u m b: C, F, H d a y W o o), and asset appropriation th

5、eory, scope economy theory.Based on the above theory as guidance, this paper analysis the western commercial bank middle business innovation motivation and current situation, in order to provide reference and enlightenment for our country bank intermediary business innovation.Modern commercial bank

6、intermediary business innovation specific reason analysis2 0 century 8 0 s, western commercial Banks has been the traditional deposit and lending business is the management focus, but on the following factors, driven by the west commercial bank intermediary business innovation to flourish, and most

7、of these factors are found support in theory.(a) the needs of customers.Along with the development of economy and growing middle class not only wealth safety, and puts forward higher requirements to value-added services, need bank provides various financial tools, the increasing need of intermediary

8、 business of consulting, agent, etc. After the collapse of the bretton woods system, the interest rates on frequent exchange rate fluctuations, the microscopic economic subject urgently need to transfer to evade interest rate risk of tools, formed with scattered, transfer function of the intermediar

9、y business risk, such as futures, options and swaps, huge demand. Wealth theory explains the wealth growth in demand for financial assets and financial transactions, and confirms this period of time in western countries in the middle of a big motivator of business innovation.(b) the market competiti

10、on2 0 century 8 s, western banking competition is mainly focused on product quality, price, etc. Into 0 s, 9 operating environment changes make the industry more competitive, Banks in service, variety, quality and the price difference is shrinking, the new product life gradually shortened, competiti

11、ve advantage can maintain time is very limited, this makes the rich service content of intermediary business has become an important means to meet customers needs.2 0 s, 9 0 century western countries has fallen lower and lower market interest rates. The fall in the spread income reduced net interest

12、 margin of Banks. In this case, the bank in order to survive, have to adapt to changing market to develop all kinds of spread business, in order to increase income.Constraint induced type theory, points out that when the economy is the change of the situation hindered the financial institutions to a

13、chieve the profit maximization goal, certainly will force them to explore new financial tools, services varieties, from both inside and outside, in order to increase their competitive ability. According to this theory, the founder of the silber, 19701982years, the United States nearly 6 0% can be ex

14、plained with the theory of financial innovation.(c) regulation of relaxationRelaxation of financial regulation law makes intermediary business development of commercial Banks to have bigger autonomy, and greatly promoted the innovation of intermediary business. 2 0 century since 8 s, the financial r

15、egulatory authorities pursued law without banned permission regulatory philosophy, modify the relevant laws and institutions, relaxed management, and financial business is becoming more and more liberalization. In loose legal environment, financial regulation can commercial Banks according to the di

16、fferences in customer demand for innovative products(d)mixed by the camp2 0 century, growing financial innovations blur the boundary between the different business of financial institutions, financial globalization has intensified competition between financial institutions, separate operation system

17、 began to collapse. Following shall be adopted by the United States, Japan and other countries such as Britain, have to give up separate operation to mixed operation. America in 1999 at the end of the financial services modernization act of decentralized control laws made a breakthrough, repeal and

18、modify such as a glass stegers method, “Universal Banks bank”Holding a large number of company law in the United States plays an important role in the financial system of financial law, the counter-measures to give up mixed on the path of integration the financial legal system in the United States.

19、Which promote the banking, securities firms and insurance companies, the joint venture between the financial institutions to establish a joint venture between, prudent management of financial system, to strengthen the competition of the financial services industry, improve its efficiency. Since then

20、, countries have to break the restrictions, implementing differentiated management since the mixed management, to meet customer requirements, industry business crossing and infiltrating each other more and more widely, the intermediary business of commercial Banks increasingly extensive, type, make

21、the modern commercial Banks become worthy of the name universal Banks. Mixed operation system provides development space for intermediary business innovation.According to the special asset theory, the stronger the asset specificity, leverage existing assets change management in the field of cost is

22、higher, the easier it is to appear separate operation. On the other hand, the easier it is to appear mixed management. As Banks expanding business scope and scale of operation, its asset specificity showed a trend of weakening, intermediate business innovation, there is no need to pay too high switc

23、hing costs, which led to the intermediary business innovation continuously active(e) I T technology development perfect risk-control mechanism2 0 century, 9 0 s is bank of Americas fastest growing period, before and after the A T M, minicomputer, data warehouse, customer relationship management syst

24、em, obtained the rapid applications such as online banking, bank trading electronic, paperless and integration trend, the various trades management and customer relationship maintenance began to rely on the computer and electronic means A lot.In addition, the effective commercial bank internal legal

25、 risk control mechanism is the important foundation of the rapid development of the intermediary business. A successful intermediary business products to meet customer needs, is operational, and legal framework of rational design, packing, also accord with the existing laws and regulations. Intermed

26、iary business products is often a combination of different financial products and derivatives, on the legal relationship is characterized by multiple combinations of legal relationship and the different rights and obligations of cohesion. Intermediary business legal relationship is complex, easy bre

27、eding ground for legal risks. To intermediary business to prevent legal risks, the west bank intermediary business for the provisions of the detailed and comprehensive; In addition, the commercial Banks themselves also attaches great importance to the internal legal institution construction and its

28、function of the play, set up effective internal legal risk prevention mechanism, so as to realize the promote intermediate business developed rapidly, and the purpose of effectively guard against legal risks.Transaction costs theory is the source of the financial innovation entirely attributed to th

29、e microscopic economic structure changes caused by the financial transaction costs down. The development of science and technology make the bank transaction costs of dominant, and risk-control mechanism, perfect the beneficial bank hidden costs, and long-term cost is reduced, the two kinds of bank i

30、ntermediary business innovation are brought about by the can get support from the theory of transaction cost.The present situation of the western commercial bank middle business innovationThroughout the west commercial bank middle business innovation history, 2 0 century 6 0 a 4 s, 9 0 0 years, west

31、 commercial Banks intermediary business era of prosperity. Of which the business innovation mainly displays in the following respects:(a) innovation varieties is unusually richIn 6 0 -8 0 s, 2 0 century west bank financial innovation appears the climax and the pattern of prosperity, all kinds of inn

32、ovation level. Among them, the intermediary business innovation of financial innovation, financial tools innovation, for example, in 4 5 major financial innovation, intermediary business innovation of the three eight. Make commercial bank intermediary business innovation all-encompassing financial s

33、upermarket, according to the statistics,Used by western commercial bank intermediary business has amounted to 20000 kinds of varieties, such as the United States banking intermediary business scope includes the traditional banking, trust services, investment banking and insurance business, fund busi

34、ness and so on, they can engage in money market operations and discount can also be engaged in commercial paper and capital markets businesses.And experience among western countries after the wave of business innovation compared to commercial Banks, Chinese commercial Banks show the narrow scope of

35、business (see table 1)Table 1：Western countries the business scope of the commercial Banks and Chinese commercial BanksSource: based on relevant literature(b) of the intermediary business scale rapid growth.According to the bank for international settlements 19 September 9 years international financ

36、ial development report, published in 1983 a 1986 U.S. banking intermediary business from $901.2 billion to $901.2 billion, increased by 11.3 times, the average annual increase 137.46%, up from 7 to 8% of all bank assets 142. 9%, the seven largest intermediary business of commercial Banks is much lar

37、ger than the size of loans. 1988, citigroup, bank of America and so on five big group among business activities involved in the total assets for more than 2. $2 trillion, compared with the Banks asset liability under the total assets of $780 billion, almost $45 billion of total capital. Intermediary

38、 business activities involved in the total assets and total capital assets total 49 times and 3 times.The intermediary business of commercial Banks accept people of all income, up from 30% in the 80 s to 38.4% in 2005 ; Citigroup 80% profit from intermediary business; Japans commercial bank middle b

39、usiness income accounted for the proportion of total income by two rose from 4% to 39.9%; British commercial banks intermediary business income accounted for the proportion of income from 28.5% to 41.1%. Deutsche banks charge, on behalf of the intermediary business revenue of commission and fee inco

40、me than in continues to improve as it enters the 21st century (see chart 1). Chart 2 of deutsche banks incomeData sources:Annual Report of Deutsche Bank 2001-2003, Enlightenment of western commercial bank middle business innovationThrough to the western commercial bank middle business innovation, at

41、 least we can get the following enlightenment:(a) take the customer as the management idea is a prerequisite for the intermediary business innovation.Maintain good customer relations has always been the important foundation of commercial banks survival, especially in the humanization and personaliza

42、tion service is a fundamental feature of intermediary business. Western commercial bank attaches great importance to maintain and consolidate the customer relationship, and thus create a series of new management concepts such as: customer value management, customer relationship management, etc., use

43、 of these management methods for screening high quality customers to provide quality services, in order to enhance bank and customer intimacy, and maintain the close relationship with customers will provide Banks with market of the important conditions.(b) the ongoing product innovation as the drivi

44、ng force of intermediate business innovation.Although the development of science and technology for commercial Banks in product innovation provides convenient conditions, but the vast majority of new product development is relatively easy to be copied. One of the most important two points is to ensu

45、re that creating new products and strive to improve organizational skills in the financial market status. Such as FIRDELITY investment company success is largely due to its ability to continuously introduce new interactive fund products; Citigroup in when a new product in a market gets saturated, ca

46、n quickly transferring them to another market.(c) the benefits of accounting is the fundamental guarantee of intermediary business innovationWestern commercial Banks on intermediary business cost standard, there is no unified rules, given the increasingly fierce competition, benefit accounting is co

47、mmercial Banks to expand their business in a niche market. European Banks, for example, the flexible freedom in terms of product development, pricing. Germany, France, Britain, the financial regulatory authorities are regulators of commercial Banks to focus on product development, pricing and sales

48、but bank product development and pricing of these institutions are unlimited, but mainly from ethics and risk prevention aspects evaluation. Due to the loose regulatory environment by the government, commercial Banks in the new product feasibility study for a business when the main comprehensive pro

49、duct cost, market competition factors such as type, customer relations and customer groups, determine the banks product pricing strategy. Therefore, western commercial Banks to the same financial services fee standards tend to differ in thousands ways, enhance the competitive ability at the same tim

50、e, provide value-added services to different customers.(d) financial group strategy alliance is a shortcut to intermediary business innovation.Financial groups strategic alliances are common in Europe. European commercial Banks during the development of intermediary business is focus on insurance, s

51、ecurities, investment banking, asset management and other non spread product marketing aspects of the strategic alliance. In insurance marketing, for example, due to the development of the existing cooperation between Banks and insurance companies rather, Europe and even the Banks insurance (Bancass

52、urance) the professional nouns. Actually Banks to carry out the agency of insurance business as first appeared in England in the early 1960 s, when barclays bank sold the first batch of policy from the commission. By 2000, Germany, England and France through Banks accounted for sales of the premium

53、income of the total amount of social insurance premiums respectively reached 16%, 2 9%and 61%.(e) the financial development of science and technology is an important means of intermediate business innovation.Development among financial science and technology is to reduce business operating costs, im

54、prove the core competitive ability, promote the innovation ability important method. For example: bank of America paid network is developed, with 4 50000 indirect transfer accounts, with a variety of account services; Royal bank of Canadas 90% of the daily business is done through the electronic mea

55、ns, bank branch has to focus on the customer relationship processing and Suggestions provided, instead of the traditional trade; Deutsche bank to this large sums of money every year for computer system and customer oriented network platform, the bank I T staff accounts for more than a quarter of the

56、 total employees.(f)into a cold can bank is an important way for intermediary business innovation.International Banks will actively expand diversified, into a universal bank. One is the development of diversified financial products, in the brokerage market progress, represented by Americas Banks; Se

57、cond is product portfolio to promote personal financial business, such as citis retail portfolio including deposit, credit, payment, investment, finance, insurance, and private banking services and so on six big product line; Three is to provide value-added services of the bank on the net, relying o

58、n high-tech bills to pay, loan application, capital management and foreign exchange trading and other business; Four is the initiative, the investment banking field such as citigroup have in February 2004 to its global corporate and investment banking group formed within the capital cityField and ne

59、w institutions such as Banks sales department department, to get back to investment banking world leading position; Five is to provide financial services for small business to become an international big Banks is an important part of business development strategy, business covering wealth management, insura