The operating income of commercial banks mainly includes traditional spread income (net interest income), net fee and commission income (also known as intermediary business income) and others. Other operating income mainly includes investment income, gains and losses from changes in fair value, summary gains and losses and other business income. Strictly speaking, intermediary business is a unique name for my country and is an imported product. In practice, some people call it off-balance sheet business, while others classify it as fee-based business.
On the basis of asset business and liability business, commercial banks make use of their advantages in technology, information, institutional networks, funds and reputation, and do not use or use less bank assets to use intermediaries and agents. The business activities of handling collection and payment, consultation, agency, guarantee, leasing and other entrusted matters for customers as their identity, providing various financial services and charging certain fees. In the two traditional businesses of asset business and liability business, banks participate as one party in credit activities; however, in intermediary business, banks are no longer directly involved in credit activities. They only play the role of intermediaries or agents and usually provide paid services. . Broadly speaking, the intermediary business of commercial banks refers to the business that does not constitute on-balance sheet assets or on-balance sheet liabilities of commercial banks and forms non-interest income for banks.
The most common international basis for classifying intermediary business types is the income source standard. The U.S. banking industry divides intermediary business into the following five categories based on income sources: First, trust business, which refers to transactions and services generated by the trust department. Income; the second is investment banking and trading business, which refers to the income generated from securities underwriting and financial trading activities; the third is deposit account service business, including account maintenance, etc.; the fourth is fee income, including credit card charges, loan securitization, Mortgage refinancing service charges, sales of mutual funds and annuities, ATM withdrawal charges, etc.; fifth, other fee income, including data processing service fees, income from the sale of various assets, etc. Payment and settlement intermediary business refers to the charging business related to currency payment and fund transfer caused by the relationship between claims and debts handled by commercial banks for customers, such as check settlement, import bill, acceptance bill, etc. A bank draft is a bill issued by the issuing bank and is paid unconditionally to the payee or holder according to the actual settlement amount when the bill is presented. A commercial bill is a bill issued by the drawer and entrusts the payee to unconditionally pay a determined amount to the payee or holder on a specified date. Commercial bills are divided into bank acceptance bills and commercial acceptance bills.