The Research On The Effect Factors Of Finance Products’ Return Of Commercial Banks In China

Since2004, the first commercial bank financial product was born, after ten year ofdevelopment, the financial products`market of commercial bank of our country grows rapidly.Commercial bank financial products to win more and more favored by investor, as their majorinvestments. On the one hand, it broadens the investment channels for investors, and on theother hand, it enriches the business mode of commercial bank, opening up a new profitchannels for commercial banks. How is the situation of returns of commercial banks’ financialproducts? What are the factors? Will these factors contribute to the development ofcommercial banks’ financial products? This paper conducts a theoretical exploration andempirical test.Firstly, this paper studies the relevant theories of financial products, reviewing theliterature. Summarizing results of previous studies, I find that more domestics study thedevelopment of commercial banks’ financial products from the qualitative aspects, a fewscholars have conducted an empirical analysis, but most scholars stand on the investorperspective to study.Then, This paper introduces the definition of commercial banks’ financial products,reviewing10years of development of financial products, classifying financial products inaccordance with the investment direction, entrust deadline, currency and other way, analyzingthe characteristics of financial products, and the current situation of returns of the financialproducts.Subsequently, this paper focuses on the analysis of the factors which affect returns ofcommercial banks’ financial products. This paper argues that:1.Different banks have creditpremium, the stronger the bank, the lower returns of the financial products which come fromthe bank.2.Different investment directions will affect the level of returns of financialproducts.3.Generally, the longer the period of financial products have a higherreturns.4.Interest rates, inflation, money supply have different degrees of influence for returnsof financial products. And I select the factors as the variables being analyzed by multipleregression analysis.By validating impact factors of return of commercial banks’ financial products, obtainedthe degree of influence of each factor. In this paper, I from the perspective of commercialbanks, and put forward reasonable suggestions to the commercial bank:1.small and medium commercial banks should build finance product brand influence;2. focusing on thedevelopment of structural and long-term financial products;3.strengthen risk management todeal with national monetary policy changes.