Establishing the transitional operation mode for Commercial Banks of China

The author holds that the commercial banks should follow some interim mode for the transition from the separate operation to the universal operation considering the drawbacks of the separate operation and the obstacles in the process toward universal operation. Based on the theoretical study of universal operation and experience from the transition process of commercial banks in America, the author presents a framework for the transition, in which the organization of financial holding corporation will carry out the agent business and off-balance sheet activities to shift toward the universal operation and expand its service into other financial organizations until a smooth transition is realized.