TITLE:
The Impact of Financial Disintermediation on the Credit Business of Chinese Commercial Banks
AUTHORS:
Ruixiong Qi, Jia Wang, Ronghua Chang, Yuanyuan Shen
KEYWORDS:
Financial Disintermediation, Commercial Banks, Credit Business
JOURNAL NAME:
Open Journal of Social Sciences,
Vol.9 No.12,
December
17,
2021
ABSTRACT: China’s capital market has been increasingly
improved and financial reform has been deepened in recent years. With the rapid
growth of Internet finance, funds have gradually separated from traditional
commercial banks or other intermediaries and quickly turned to the financial
market with low financing cost. The trend of financial disintermediation has
been increasing. Affected by the trend of “financial disintermediation”, the
supply of money market has slowed down significantly. Large-scale capital
bypassed financial intermediaries such as commercial banks, flowed into trust
financing, private lending, and entered the NEEQ market, bonds, stocks or other
financing channels. Based on the actual situation of commercial banks, this
article analyzes the impact of credit business under the trend of financial
disintermediation, and proposes countermeasures for Chinese commercial banks in
terms of optimizing business structure, accelerating strategic transformation
and reforming traditional service models, with a view to proactively responding
to the challenge of financial disintermediation and accelerate the realization
of strategic transformation, structural adjustment and financial reform.