The Analysis Of Credit Assets Product In Domestic Comercial Bank

As domestic commercial banks currently make the transition from a simplex model to a comprehensive management mode and face the challenge of reduced spreads of rates, the traditional commercial bank deposit interest earnings pattern no longer meets the need for shareholders value maximization and market competition. Banks have increasingly focused on asset management as the main source of profit growth. Asset management business has long been dominated by brokerage firms, mutual funds, and trust company, among other financial institutions. After the easing in the regulatory policies in recent years, banks have quickly entered this market. With their abundant resources on clients and the monopolistic advantage in their industry, banks quickly shattered the dominance of incumbents in this market.Currently, financial institutions are subject to different regulations set by different government agencies such as the CIRC , CBRC and the CSRC. Through the collaboration with trust companies in the credit assets and the introduction new deposit substitute products, banks quickly captured market share. As new credit assets product being introduced, banks have formed a credit assets pool, and have transformed from a single corresponding product model to asset allocation with different maturities and yields. This transformation has greatly improved the bank's research and development in new financial products. However, asset pricing for the asset pool is still at the primary stage. How to come up with the appropriate methods for pricing different assets will determine the position of these banks in the marketplace. This paper aims to analyze bank credit assets from the perspectives of asset management market, asset pricing methods, and risk management.