Assets Structural Optimization Of The Commercial Banks

At present, the concentration degree of financial resources in China is very high,the degree of financial market developed is low and the indirect financial instrumentsstarts late which means the financial system allocates financial resources mainlydepending on the banking financial institutions. As the backbone of financial system,the asset structure of commercial banks affect not only the risk and return, but also theefficiency and risk of the whole financial system. With the increase of marketizationdegree and the international competition, the asset of commercial banks increasesgradually, but this can’t make up for the security, liquidity and return difference whichis brought by the imbalance of asset structure.In developed countries, the financial system is more mature, the financialinnovation technology is more advanced and the endurance of financial turmoil andcrisis is stronger, which means China be in a inferior position in globalization. Hence,we have to optimize the asset structure and increase the efficiency of asset allocationto obtain positive effect in globalization. This paper tries to find out the problems ofasset structure of commercial banks in China through qualitative analysis andquantitative analysis. Furthermore, it also put forward the correspondingcountermeasure proposal.The asset structure in this paper is the relative size and mutual relationship ofsundry assets. The followings are the main contents in this paper. Firstly, it reviewsthe related research on commercial banks’ asset structure at home and abroad.Secondly, basing on the security, liquidity and profitability, this paper analyzes assetstructure of commercial banks. Specifically, it finds out the main problems of assetstructure through quantitative analysis and compares with Citibank. Liquidity is oneof the constraints of Markowitz model which mainly research the relationship ofsecurity and profitability. Along with VaR model and capital managementcombination, Markowitz model can work out the best capital structure and efficientfrontier of asset portfolio. Basing on the model and the efficient frontier, this paperanalyzes the reasonability and improvement direction of asset structure ofCommercial Bank of China. Thirdly, this thesis also puts forward feasible suggestionsaccording to the results above.The results show that, the asset structure of commercial banks in China is improving towards a reasonable direction. However, there are still some problemsresult in the imbalance of security, liquidity and profitability, such as high commercialloans ratio, excess liquidity, and simple investment structure and so on. In response tothis situation, this paper puts forward several advices including strengtheningmonetary market and capital market, adjusting the scale and structure of loan assetsand security assets, enhancing innovation and risk prevention of the intermediatebusiness.The asset structure in this paper is the relative size and mutual relationship ofsundry assets. The followings are the main contents in this paper. Firstly, it reviewsthe related research on commercial banks’ asset structure at home and abroad.Secondly, basing on the security, liquidity and profitability, this paper analyzes assetstructure of commercial banks. Specifically, it finds out the main problems of assetstructure through quantitative analysis and compares with Citibank. Liquidity is oneof the constraints of Markowitz model which mainly research the relationship ofsecurity and profitability. Along with VaR model and capital managementcombination, Markowitz model can work out the best capital structure and efficientfrontier of asset portfolio. Basing on the model and the efficient frontier, this paperanalyzes the reasonability and improvement direction of asset structure ofCommercial Bank of China. Thirdly, this thesis also puts forward feasible suggestionsaccording to the results above.The results show that the asset structure of commercial banks in China isimproving towards a reasonable direction. However, there are still some problemsresult in the imbalance of security, liquidity and profitability, such as high commercialloans ratio, excess liquidity, and simple investment structure and so on. In response tothis situation, this paper puts forward several advices including strengtheningmonetary market and capital market, adjusting the scale and structure of loan assetsand security assets, enhancing innovation and risk prevention of the intermediatebusiness.The results show that, the asset structure of commercial banks in China isimproving towards a reasonable direction. However, there are still some problemsresult in the imbalance of security, liquidity and profitability, such as high commercialloans ratio, excess liquidity, and simple investment structure and so on. In response tothis situation, this paper puts forward several advices including strengtheningmonetary market and capital market, adjusting the scale and structure of loan assets and security assets, enhancing innovation and risk prevention of the intermediatebusiness.