Financial intermediary is a credit intermediary between surplus and demander. They mainly form a source of funds by issuing indirect securities, and then invest these funds in financial assets such as loans and income securities. They are an important part of the financial system and play an important role in the whole national economy. By dredging and guiding the flow of funds, they can promote the allocation of economic and social resources and improve the efficiency of the whole social economy.

There are many forms of financial intermediary, but as an intermediary for effective financing funds to flow from surplus units to deficit units and realize resource transfer, banks are the most typical. Its important functions are:

Credit intermediary of financing, effectively transferring social resources;

Create credit currency and expand credit;

Provide a wide range of financial services. The structure of the current financial intermediary system in China is roughly as follows:

(1) Central Bank: The People's Bank of China is the central bank of China, the macro-control department that formulates and implements monetary policies, maintains financial stability and provides financial services under the leadership of the State Council, a bank issued by China, a bank of banks and a bank of the government.

(2) Policy banks: 1994, China Development Bank, China Agricultural Development Bank and The Export-Import Bank of China were established one after another.

(3) Commercial banks: China Industrial and Commercial Bank, China Agricultural Bank, China Bank and China Construction Bank are the main forces of the commercial banking system in China. Except China Agricultural Bank, China Industrial and Commercial Bank, China Bank and China Construction Bank have all been transformed into joint-stock commercial banks through successful listing. There are also some early joint-stock commercial banks in China.

(4) Insurance companies: follow the principle of "separate operation" and accept the supervision of the CIRC.

(5) Investment banks and securities companies: China International Capital Corporation Limited established in 1995, four financial asset management companies established in 1999 and insurance asset management companies established one after another can operate investment banking business.

(6) Foreign-funded financial institutions in China: first, the representative offices of foreign-funded financial institutions in China, and second, the business institutions established by foreign-funded financial institutions in China.