| Under the impact of narrowing deposit and loan spreads and Internet finance,traditional commercial banks’ interest income space has been compressed and they have started to focus more on non-interest income business.In this situation,many commercial banks have introduced wealth management derivatives based on crude oil to attract investors and boost non-interest income.Although domestic crude oil products have been developed since 2018,the innovative design of the products and related domestic derivatives trading regulations are not perfect,and the characteristics of being linked to overseas crude oil futures contracts and susceptible to international market influence make them come with huge risks.Early in 2020 as a result of the epidemic,the price of the U.S.Texas light crude oil futures contract(WTI)hit a record low and once fell to an alarmingly negative price.The Bank of China crude oil treasure product linked to it was also severely affected,with long customers wearing out their positions and even backing into the bank incident causing widespread concern in the country.As China’s financial derivatives market started late and is still in its infancy,the handling of the crude oil treasure risk incident is of great significance to the healthy development of China’s financial derivatives.This paper takes the BOC’s crude oil treasure product as the research object and analyzes the event in four main sections.The first section introduces the concept of financial derivatives and related risk theories to provide the theoretical foundation for the risk analysis of crude oil treasure in the later section.The second section,the quarterly data of 19 commercial banks from 2015 to 2022 are selected for empirical analysis.The test results show that the use of financial derivatives is positively correlated with the risks of commercial banks,and financial derivatives will improve the risk level of banks.The third section,we comprehensively review the sequence of the crude oil treasure incident,including the characteristics of the crude oil treasure product,the background of the negative oil price,the development of the incident,the handling measures of the regulatory authorities and the BOC and the subsequent impact of crude oil treasure on the BOC.We focus on the role of the BOC in the crude oil treasure product and the risks arising from the different positioning.In the domestic market,the BOC plays the role of market maker,providing quotes for the purchase and sale of crude oil treasure product contracts,risk management of trading accounts and account fund clearing services,and bearing the risk of crude oil treasure product deposit and loan management.As a trader in the foreign futures market,the BOC participates in the purchase and sale of WTI crude oil futures contracts,bearing the exchange rate risk,liquidity risk,and operational risk.Secondly,the internal and external reasons of the crude oil treasure delivery warehouse are analyzed,and finally,the stock price changes of BOC are compared before and after the occurrence of the event.The results show that the negative effect on BOC will be difficult to eliminate in the short term.Based on this study,the fourth section provides suggestions on risk management of financial derivatives in China from the viewpoints of commercial banks,investors,and regulators.Commercial banks should strengthen the design capability of derivatives and the sales management of financial products,as well as improve the risk monitoring mechanism and product risk management.Also,investors should strengthen the risk awareness of bank financial management and invest in derivative financial products with caution.In addition,regulators should improve the regulations and information disclosure mechanism of derivatives trading,guiding the benign development of the domestic financial derivatives market. |
