Commercial Banks To Develop Enterprise Short-term Financing Bill Business Analysis

To promote the building of the monetary market, the central bank introduce short-term financing bills into the inter-bank bond market, which is to widen financing channels for enterprises and leave far-reaching impact on the operation of commercial banks. How to promote the development of enterprise short-term financing bills, thus contributing to their own business innovation, commercial banks need to continuously explore in practice. Especially in the trend of the traditional financing structure change, the increase in bank consolidated profitability will be one of the main challenges faced by commercial banks at this stage.A corporate short-term financing bill is a market-oriented financing instrument. To avoid the risk of indirect financing system under the concentration of credit become the risk of direct financing system under the government, it strive to bring the risks to investors and reveal the information to the intermediary service agencies, so that authorities can determine a way out from the issuer.This paper is divided into five parts. Firstly, define the definition of short-term financing bills. Secondly, introduce the history and current situation of short-term financing bills, focusing on analysis of their status, including the specific circumstances of issuers and other elements. Thirdly, introduce foreign commercial paper market and provide some ideas to development of China's short-term financing bills by comparing the domestic and international paper market. Fourthly, set an example to describe general risks and operational practices of short-term financing bills. Finally, reveal the ignoring risk factors in practical operation-the risk of short-term financing used for long-term investments. Combination of this risk, analyze the substitution effect of commercial banks' traditional business, as well as the substitution effect for the commercial banks.Through the above discussion, pointed out the substitution effect of corporate short-term financing voucher business to the short-term loans to commercial banks. At the same time, combined with case studies of the commercial banks' ignoring risk factors in practical operation-short-term funds that enterprises raise through vouchers have been used as a long-term investment. It is "short-term financing used for long-term investments" phenomenon so widespread that the substitution effect of voucher business for short-term financing to commercial bank loans has become more complex. "Short-term financing used for long-term investments" for commercial banks, in short, refers that companies raise short-term capital to apply into long-term investments, which led to a decline in corporate demand for long-term loans. The existence of this phenomenon makes short-term financing bills in the short-term loans to commercial banks with an alternative role, and also forms a substitution for long-term loans. After this study, conclude that it is precisely because the existence of such a substitution effect, corporate voucher business, for the short-term financing of commercial banks, mainly reflected in:Firstly, the enterprise short-term financing voucher business accelerates the restructuring of China's commercial banks.①The relationship between commercial bank credit start to rely on bonds;②Commercial bank financing service start to rely on investment banking;③Improve the internal management of commercial banks.Secondly, short-term financing bills increase corporate business competition among financial institutions. Includes the following two aspects:①Competition among commercial banks. The introduction of enterprise short-term financing bills to investment banking, the operation& management mode of commercial banking, and consciousness of financial services put forward a new challenge. If due to a slow response or lack of preparation, the banks will miss the boat.②Competition between commercial banks and securities firms. In areas of securities underwriting, securities firms have the talent and professional advantages. Meanwhile, its investment banking clients can also be short-term financing bills'potential clients. If the business disruption in the securities market financing, securities firms may opt for the issuance of enterprise short-term financing bills.Therefore, once a large-scale of securities firms into underwriting short-term financing bills market, commercial banks will face a tremendous challenge. In response to a change in corporate financing structure, commercial banks should continue to improve risk management capabilities.Of course, because the limitations of author's academic knowledge and some objective restriction, this paper has some shortcomings on theoretic base foundation, settlement of research samples, width of research area and solidity of research method, which need improving.