What is asset management theory?

Asset management theory, also called liquidity management theory. From its development, there are mainly three kinds of asset management theories.

1, commercial loan theory, also known as real bill theory.

According to the theory of commercial loans, banks' funds come from customers' deposits, which should be withdrawn frequently. Banks can only use funds for a short period of time, and cannot issue long-term loans or make long-term investments. Secondly, only commercial loans can meet the requirements of banks to maintain security, earn profits and provide short-term loans.

2. Exchange theory.

Convertibility theory holds that bank loans cannot be repaid only by short-term and self-repayment. As long as the bank's assets can be converted into cash at any time when depositors withdraw, and the bank's liquidity is maintained, it is safe. Such assets can be held in the short-term or long-term, regardless of whether they are paid by themselves.

3. Expected income theory.

The expected income theory holds that the loan of commercial banks should be based on the borrower's expected income or cash repayment plan. As long as the borrower's expected income is guaranteed, even long-term loans or assets that cannot be quickly converted will not bring liquidity problems to banks.

The modern asset management method is to establish a mathematical model according to the relationship between assets and liabilities and the components of the income statement, and then analyze it on the computer by using statistical technology and draw a conclusion.

This method is mainly used in three aspects in bank management: using fuzzy mathematics to determine the best cash holdings of cashiers; Copy the bank's operation process with simulation technology; Solving the problem of fund allocation in asset management and portfolio with linear algebra.

Asset management theory has its own great limitations.