A Study On The Design Of Structured Deposit In China

Structured product is a new type of financial product that combines the features of both fixed income securities and derivatives. As the latest development of modern financial markets, structured products have become an important part in international market of derivatives.Structured products have become the most rapidly growing area in management business of commercial banks since 2003, when they appeared in China in the form of structured deposits. Forming a new source of profit growth, structured deposits have a far-reaching impact on the management of commercial banks. The development of structured deposits is extremely important to the enhancement of profitability and competitiveness of commercial banks.This paper tried to make a systematic research on the design of structured deposits. By analyzing the fundamental principles and pricing of structured deposits, we tried to find ways to promote the development of structured deposits, referring to the current situations in China. The full text is structured as follows:In chapter one, as an introduction, the background, significance and methods of this paper are described, followed by a presentation of the innovative point in this paper.In chapter two, there would be a systematic study on the basic theories of structured deposits designing, including principles, basic elements, and procedures in designing, benefits and risks of commercial banks doing these businesses, and the main modes of designing reflected by existing products.In chapter three, the pricing of structured deposits is the core. The basic methods of bonds and derivatives pricing are studied respectively as theoretical foundations. Based on these methods, the pricing of structured deposits is acquired.In chapter four, a study on current situations of structured deposits' development is made according to the previous theories. After a brief description, we concluded the characteristics of structured deposits designing in China, and pointed out resisting problems.In chapter five, according to the problems discovered in chapter four, solutions were raised in the views of both the issuer and the market.