What does financial fpa mean?

FPA means the total amount of financing, which can represent all the financing activities of a bank in a certain period of time. fpa includes traditional financing and non-traditional financing, traditional financing specifically refers to public loans, letters of credit and so on, and non-traditional financing refers to a number of asset management, financial management, trading, leasing economy and so on. The introduction of FPA proves to a certain extent that there are limitations in the business of the public sector, traditional credit is facing the problem of stagnation, and more quality customers are not choosing traditional credit methods, but are constantly looking for innovations, and the introduction of FPA caters to these people's preferences.

FPA borrows the connotation of the scale of social financing

In terms of connotation, FPA and the scale of social financing have similarities and differences. The scale of social financing refers to the total amount of funds obtained by non-financial enterprises and individuals from the financial system, including on-balance-sheet loans, off-balance-sheet financing, stock and bond financing, etc., which is the demand-side concept corresponding to M2. In contrast to the scale of social financing, FPA refers to all the financing support (including traditional loans and many off-balance-sheet financing support such as aggregation and underwriting) that a company receives from that bank, again a typical connotation from the demand side of the customer.

FPA and AUM are similar

In a way, FPA (Finance Product Aggregate) is similar to AUM (Asset Under Management).

1. AUM is mainly for the retail line, which can be further categorized into retail client AUM, wealth client AUM and private banking client AUM, while FPA is mainly for the corporate line.

2. AUM refers to meeting the investment needs of retail customers, specifically including the total amount of various types of investable assets such as deposits, wealth management and sales products provided to retail customers, i.e., the total amount of various types of allocable assets (including on-balance-sheet deposits, off-balance-sheet wealth management, sales of funds, sales of insurance, sales of trusts, etc.) provided to retail customers.

Correspondingly, FPA mainly refers to meeting all the financing needs of corporate line customers, specifically including the total of various types of funding sources such as loans, discounting, non-standard financing, wealth management funds, bond underwriting, aggregation, etc., provided to meet the financing needs of corporate customers, i.e., to find all types of funding channels for corporate customers.