Arbitrage business is also called interest arbitrage. Arbitrage refers to a foreign exchange transaction in which arbitrageurs use the difference of short-term interest rates between two currencies and the inconsistency of long-term premium (discount) between the two currencies to transfer favorable funds, and arbitrage profits from the spread or exchange rate difference.

In the foreign exchange market, the forward exchange rate of currencies with high arbitrage interest rate will fall, and the arbitrage exchange rate will be greater than the spread. Arbitrage trading must comprehensively consider arbitrage business. Arbitrage business uses forward foreign exchange market, which sells one-year forward currency while buying high-interest spot currency. Arbitrage refers to hedging the above-mentioned exchange rate fluctuation risk through swap transactions and earning spreads, which is called covered interest arbitrage.

I. Sharing of Bank-Credit Cooperation Business:

1. European Depository of pledge invoicing business: European Depository can solve the problem that interest cannot be prepaid, and swap proceeds can be issued at the time of acceptance.

2. Deposits in Europe and loans to the United States: Euro deposits are pledged and lent to the United States to pay foreign exchange.

3. Australian dollar deposit and loan business: both US dollar deposits and forward income are required to be advanced, and loan interest is also required to be advanced.

4. Structured deposit pledge invoicing business: We hedge structured deposits ourselves. 5. Structured deposit pledge loans in the United States, Europe and Australia: it is best to have a fixed part in advance.

Second, what is silver ticket arbitrage? Silver ticket arbitrage is a bank's withdrawal business, also known as bank financial arbitrage, just like banks give depositors extra interest in order to pull deposits or promote bank financial products. As long as banks have the demand to pull deposits, there will be bank withdrawal business. In order to be more compliant, banks have designed an arbitrage model to make large deposit customers profitable. The silver ticket is just a safe and compliant carrier.

This arbitrage business actually bears the responsibility of banks to reduce non-performing rate and capital adequacy ratio. What do you mean by that? After the bank expires, many enterprises can't actually repay their loans. Can't they just watch him rot? Here comes interbank business again: such assets of banks are first borrowed from financial interbank funds through interbank business and channel business to reduce the non-performing rate and capital adequacy ratio.