| Credit, products are one of financial innovations invented by commercial banks and financial trusts. Funds raised from these products will be reinvested in credit assets, trust loans or extending enterprises loans via trust platforms by commercial banks.Since 2007, sheer size of credit products has made them the backbone of bank financing products. However with the prosperity, potential risks also followed up, such as problems in marketing and operating, failures of supervision for counterparties caused by "imbalance between banking and trust industry", and especially the most noteworthy problem that banks escape from supervision for credit quota. In July 2010, because of the potential risk on banks'credit assets off-balance sheet, the financial cooperation between Trust and Banking has been suspended. But as a matter of fact, it is an expediential strategy, other than implementing effective supervisions corresponding with characteristic of the products risks to lead the market healthy in long term.This dissertation is to analyses the operation mode and the main problems of the credit products with considering characteristic of the cooperation, then indentifying the main risks in the process to give suggestions on risk management from the products themselves, commercial banks and regulators aspects. |
