How should commercial banks deepen reform?

What challenges do commercial banks face in deepening reform?

At present, China's banking industry is in an era of change. Under the multiple impacts of interest rate liberalization, financial disintermediation and technological wave (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 business transformation of commercial banks. According to statistics, most of the top 20 asset management companies in the world are banks or bank subsidiaries, among which Deutsche Bank, UBS Group AG 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 $65,438 +0.4 trillion in customer assets under its name, but its on-balance-sheet assets are less than $400 billion. Large asset management contains huge market space, which creates conditions for the transformation and development of commercial banks. But as far as the current situation is concerned, the impact on commercial banks is more obvious:

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 more and more scarce. Due to the need of competition, commercial banks generally implement the policy of floating deposit interest rate, and the debt cost rises accordingly. Even so, the growth rate of deposits in commercial banks is still slowing down. In the first seven months of this year, the growth rate of local and foreign currency deposits of financial institutions was 6.9%, significantly lower than the level of 9.7% in the same period of last year, of which the diverted deposits of wealth management products were about/kloc-0.6 trillion yuan. 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 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 recent three years, the average annual compound growth rate of various deposits in the banking industry is about 13%, while the average annual compound 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 20 14, the balance of interbank deposits of financial institutions exceeded 2 1 trillion, an increase of 7.5 trillion compared with 20 1 1. 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 was quite 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 phenomenon of "rushing time"). At the same time, with the expansion of off-balance sheet asset management scale, especially the growth of open products, the uncertainty of on-balance sheet assets and liabilities changes further increases. 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, reducing the efficiency of on-balance-sheet asset allocation.

Third, liquidity and interest rate risk management have increased. Under the background of large asset management, faced with off-balance-sheet funds with different maturities and different return requirements, commercial banks must match the corresponding assets on the asset side to ensure the competitiveness and appropriate profit level of the debt side. This process may increase the maturity mismatch of assets and liabilities (mainly reflected in inter-bank business), especially in the case of asset securitization, immature creditor's rights transfer platform and rigid redemption of off-balance sheet business, the liquidity management of commercial banks is facing great challenges. In addition, while promoting the interest rate marketization reform, large asset management has caused the diversification and fluctuation of the market interest rate benchmark, which has increased the interest rate risk faced by commercial banks.

How do 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 that is coordinated between on-balance sheet and off-balance sheet.

The first is the overall management of off-balance-sheet liabilities centered on financing. Under the background of large capital management, the channels for customer funds to enter banks are gradually diversified. Commercial banks should introduce and constantly improve the management mode of customers' financial assets, change from deposit-centered management to comprehensive 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 volume and price, establish a pricing mechanism with asset income constraints, and weigh the balance between income space and scale growth. The focus is on absorbing stable and low-cost settlement funds to meet liquidity demand, 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 centered on capital. Facing the challenge of large asset management, the asset side should establish the concept of off-balance sheet and off-balance sheet combined management, and build a collaborative 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 level of capital adequacy ratio, 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 distribution mechanism based on internal capital adequacy ratio (available economic capital/economic capital occupation) to achieve the coordination of objectives, processes and results. 3. Plan and manage off-balance-sheet financing (asset management), asset securitization and disposal of non-performing assets in a unified way based on saving capital and improving the level of return on capital, so as to enhance the initiative of "revitalizing the stock" and 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 asset-liability business, on-balance sheet and off-balance sheet business, credit and non-credit business, supervision and market-oriented business pricing. 1. On-balance-sheet business is based on internal fund transfer pricing, 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 customers, 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, identify, measure, monitor and control the interest rate, exchange rate and liquidity risks of off-balance sheet business at your own risk. Strengthen the mismatch control of off-balance-sheet business term, establish a risk limit restraint mechanism, and improve the risk self-balancing ability. Measurable bank account interest rate risk and liquidity risk are completely separated from operating institutions and reflected in internal fund transfer pricing, which improves the transmission efficiency of market risk and liquidity risk management concepts and enables operating institutions to focus on business operations within a unified framework of market risk and liquidity risk management.