When banks screening customers, they need accounting firms to audit the financial situation of these customers; when providing sophisticated financial services, they need law firms to verify and justify the legality of the business of their customers; when estimating customers’ assets, they need professional asset quality estimators to determine their value; when conducting asset management through transactions of financial securities, they need rating agencies to rate the financial products for the purpose of pricing these products.
It is common understanding that the growth and development of these specialized intermediaries will contribute to the development of capital market. From the prospective of developing the banking sector, for the commercial banks to improve asset quality and effectively prevent the NPLs from growing, we must place enough emphasis on the role and development of specialized intermediaries.