Design And Determination Of Structured Deposit Under The New Asset Management Regulations

In April 2018,the People’s Bank of China,the Bank of China Insurance Supervision and Administration Commission,the China Securities Regulatory Commission,and the State Administration of Foreign Exchange jointly issued the "Guiding Opinions on Regulating the Asset Management Business of Financial Institutions".Under the circumstance,due to the restrictions on the off-balance sheet and wealth management business of banks,structured deposits are regarded as one of the substitutes for bank-guaranteed wealth management products,and the scale continues to rise.However,there are still many problems with the structured deposits issued by domestic commercial banks.The main reason is that the design of the product structure is not standardized,and the product risks cannot be hedged,large assets leads to insufficient management capabilities,illegal promotion and sales.In order to development of structured deposits,this paper analyzes the design process and pricing principles of structured deposits linked to single-asset stock index and multi-asset stock index.This article first introduces the research background,the importance of research,the research trends,and the research topics.The second part introduces the basic concept of structured deposit,and prospects for the future development of structured deposit.The third part analyzes the relevant provisions of structured deposits.The fourth part and the fifth part are the focus of this article,respectively,the structure of the financial product design process,pricing principles and pricing models,and product pricing for an empirical analysis.The sixth part gives the conclusions and policy recommendations.The main contribution of this paper is to analyze the design and pricing of stock index-linked structured deposit and apply Copula function and Monte Carlo simulation method to the design and pricing of stock index-linked structured deposit,to provide reference for Chinese commercial banks in the design and pricing of related products.