At present, the banking industry in China is in an era of change. Under the multiple impacts of interest rate marketization, financial disintermediation and the wave of science and technology (Internet, big data, cloud computing, etc.), the traditional banking development model is difficult to adapt to the drastic changes in the environment, and business transformation has become the only way for banking reform and development. Internationally, asset management will be one of the important directions of commercial banks' business transformation. According to statistics, most of the top 2 asset management companies in the world are banks or bank subsidiaries, among which Deutsche Bank, UBS Group AG and HSBC are among them. The asset management scale of many international advanced banks exceeds the on-balance-sheet assets, such as Bank of New York Mellon, which manages nearly $1.4 trillion in customer assets under its name, while the on-balance-sheet assets are less than $4 billion. Large asset management contains huge market space, which creates conditions for the transformation and development of commercial banks. However, as far as the current situation is concerned, the impact on commercial banks is more obvious: < P > First, the competition in debt business has intensified. Under the background of large capital management, financial products are becoming more and more abundant, but at the same time, deposit resources are becoming increasingly scarce. Due to the need of competition, commercial banks generally implement the policy of floating interest rates on deposits, and the cost of liabilities rises accordingly. Even so, the growth rate of commercial bank deposits still shows a slowing trend. In the first seven months of this year, the growth rate of local and foreign currency deposits of financial institutions was 6.9%, which was significantly lower than the level of 9.7% in the same period of last year, among which wealth management products diverted about 1.6 trillion yuan of deposits. Referring to the history of developed countries, with the acceleration of interest rate marketization, the impact of commercial banks on low-cost capital sources will continue in the next few years.
second, the stability of the balance sheet has declined. On the one hand, the growth rate of deposits is lower than that of assets, which breaks the original balance of the balance sheet. In the past three years, the compound annual growth rate of various deposits in the banking industry is about 13%, while the compound annual growth rate of total assets is nearly 17%, with a difference of about 4 percentage points. Therefore, commercial banks have to rely on short-term liabilities such as interbank deposits to make up for the funding gap, which increases the instability of their balance sheets. By the end of June 214, the balance of interbank deposits of financial institutions had exceeded 21 trillion, an increase of 7.5 trillion over 211. On the other hand, the competition on the debt side intensifies the uncertainty of the source of funds. According to the statistics of the central bank, RMB deposits in financial institutions soared by 3.79 trillion yuan in June this year, but decreased by 1.98 trillion yuan in July, which is highly volatile (at present, the regulatory authorities have strengthened measures to control the fluctuation of deposits in commercial banks, and all commercial banks are earnestly implementing this requirement to prevent the occurrence of "rush time" phenomenon). At the same time, with the expansion of off-balance sheet asset management scale, especially the growth of open products, the uncertainty of changes in on-balance sheet assets and liabilities is further increased. In addition, when there may be insufficient effective demand during the economic transition period, off-balance sheet business will also divert some high-quality financing projects or investment targets, which will reduce the efficiency of on-balance sheet asset allocation.
thirdly, liquidity and interest rate risk management have increased. Under the background of large capital management, commercial banks must match the corresponding assets on the asset side in order to ensure the competitiveness and appropriate profit level of the debt side in the face of off-balance-sheet funds with different maturities and different return requirements. This process may increase the maturity mismatch between assets and liabilities (mainly reflected in inter-bank business), especially in the case that asset securitization and credit transfer platforms are not mature and the rigid redemption of off-balance sheet business has not been broken, the liquidity management of commercial banks is facing great challenges. In addition, while promoting the reform of interest rate marketization, the large asset management has caused the diversification and volatility of market interest rate benchmarks and increased the interest rate risks faced by commercial banks.
how should commercial banks cope with the reform?
in order to cope with these challenges under the background of large capital management, commercial banks must bring off-balance sheet business into the scope of asset-liability management and establish an asset-liability management system to coordinate both on-balance sheet and off-balance sheet.
first, the overall management of off-balance-sheet liabilities centered on fund raising. Under the background of large asset management, the channels for customers' funds to enter the bank are gradually diversified. Commercial banks should introduce and constantly improve the management mode of customers' financial assets, from deposit-centered management to overall management covering off-balance-sheet liabilities such as deposits, wealth management and interbank deposits, and establish a cost-oriented and liquidity-oriented debt structure optimization mechanism. 1. Continue to highlight the core position of deposits, consolidate low-cost capital sources, fully tap the potential of channels, products and services, improve customer stickiness and capital stability, and actively improve the controllability of passive liabilities. 2. Give full play to the role of active liabilities, coordinate quantity and price, establish a pricing mechanism constrained by asset returns, and weigh the balance between income space and scale growth. The focus is on absorbing stable and low-cost settlement funds to meet liquidity needs, and absorbing stable funds through innovative products such as interbank deposit certificates and large deposit certificates to make up for the medium and long-term funding gap. 3. Accelerate the transformation of wealth management business to asset management, so that it can gradually get rid of the functions of adjusting deposits and moving assets, and return to the essence of wealth management on behalf of customers.
the second is the overall management of off-balance-sheet assets with capital as the center. Facing the challenge of large asset management, the asset side should establish the concept of off-balance-sheet and off-balance-sheet portfolio management, and build a coordinated management model of capital and assets around capital constraints and value return requirements. 1. Strengthen the rigid capital constraint, insist that business development must obey the capital constraint, and scale expansion must obey the operating principle of capital support ability, live within our means, ensure that the expansion of risk assets of the whole bank is compatible with the capital adequacy level, market environment, management level and risk control ability, and realize the comprehensive transformation of business and profit model. 2. Straighten out the value transmission mechanism, take the level of capital return as the basis of portfolio management in the balance sheet, and establish a credit allocation mechanism based on internal capital adequacy ratio (available economic capital/economic capital occupation) to achieve the coordination of objectives, processes and results. 3. Make overall planning both inside and outside the balance sheet, with saving capital and improving the level of return on capital as the judgment standard, plan and manage off-balance sheet financing (asset management), asset securitization and disposal of non-performing assets in a unified way, and enhance the initiative of "revitalizing the stock" to improve the efficiency of capital utilization.
the third is the overall management of off-balance-sheet and off-balance-sheet pricing centered on value return. Establish an evaluation model of customer's comprehensive contribution with economic added value and return on economic capital as the core, and promote the transformation from single business pricing to customer's comprehensive return pricing model. Improve the coordination of pricing between asset and liability business, on-balance-sheet and off-balance-sheet business, credit and non-credit business, and regulatory and market-oriented business. 1. On-balance-sheet business is based on internal fund transfer pricing, and products are priced according to the principle of unified pricing method and differentiated return requirements, and loan pricing standards and models are refined from the dimensions of industry, region and customer, so as to improve the refined level of pricing management. 2. The pricing of off-balance-sheet business refers to the pricing level of homogeneous business in the table, and the pricing spread is reasonably determined according to the different risks. 3. Strengthen the concentration of online and offline debt pricing management, and improve the coordination of pricing between active debt products.
the fourth is to strengthen the overall management of interest rate, exchange rate and liquidity risk. Starting from reducing the risk exposure, we will identify, measure, monitor and control the interest rate, exchange rate and liquidity risks of off-balance-sheet business on the premise of taking risks at our own risk. Strengthen the control of maturity mismatch of off-balance-sheet business, establish a risk limit restraint mechanism, and improve the ability of risk self-balance. The measurable bank account interest rate risk and liquidity risk are fully separated from the operating institutions and reflected in the internal fund transfer pricing, which improves the transmission efficiency of market risk and liquidity risk management concepts and enables the operating institutions to focus on business operations within a unified framework of market risk and liquidity risk management.