The Problem And Solution Of Commercial Bank’s Personal Financing Business In China

Since the advent of the first domestic bank financial products, the issue volume ofbank financial market maintained rapid growth. There is the growth of the "explosion" in2011. Bank financial products has now become a household investment products. Thou-sands of RMB and foreign exchange financial products launched in the market, the size hasmore than one trillion yuan. At the same time, China ’s financial market has many prob-lems, such as: the pricing of financial products is not enough scientific, weak risk man-agement of financial products, financial management process of asymmetric information,the quality of personnel differences in financial products. If these problems are not re-solved, it will affect the further development of the financial market.The reasons of these problems can be shown as following: First, lacking of scientificpricing mechanism, that is difficult to flexibly adjusted according to the characteristics oftheir products. Second, China’s commercial banks financial products is still in extensivemanagement phase, the risk management of financial products is relatively backward.Third, failure to establish a complete information disclosure mechanism of pre-sale, sale.Fourth, lacking of high-quality personnel to communicate effectively with customers andstaff proficient in financial literacy professional financial to explain.Regulate the financial markets, and promote the healthy development of the financialmarket, needs to take the following methods. First, the establishment of "three comple-mentary market pricing mechanism", the pricing mechanism will help the price of financialproducts to realize fair. Second, strengthen the construction and maintenance of the inter-nal control system in terms of organization, technology, auditing, quality of personnel,customers, financial awareness training, etc., to achieve the integration of risk managementcontrols. Third, by implementing adequate risk revealing and meet the investor’s right toknow both the business information to be disclosed, to address the information asymmetrybetween banks and investors. Fourth, determine the commercial bank financing business professionals to enter and exit mechanisms in strict accordance with the quality require-ments of the frontline sales staff, account managers and professional financial planner.