Bank Structured Products Pricing And Risk Management Research

With a fully opened the domestic financial sector and the increasing fierce banking competition, this article carries out specific research in pricing and risk management of structured financial products. Focus to reveal the present problems and bring about corresponding solutions based on the immature status on China early development of financial product area.Around the purpose of this study, this article starts from concepts and theories of structured banking financial products, first of all to classify the common structured products, and conducted a systematic study of different pricing models by introducing a specific analysis method. Summing up the characteristics of structured products, analysis of structured products in domestic banks mainly in the risk categories and risk management. Following the introduction of structured financial products, China's banking history and present situation of development, from product design, marketing services and external financial environment, in-depth explored the domestic banking problems and put forward a series of development proposals. Five parts are constituted as follows:Introduction, firstly described the background and significance of topics, and then summarized and reviewed the foreign bank structured products on the market research literature.Followed by briefly statement of the research framework and research methods arid the conclusion with the innovation and the limitations of this article.The second part defines the bank structured financial products, concepts from a theoretical point of view to explain the bank Personal Financial Services, and the definition of bank financing business and the main features and basic categories in structured products.The third part researched the elements of the structured products, particularly, stressed the various composition and decomposition of the financial derivative contracts based on the product design process. And conducted in-depth research according to Black-Scholes model, binomial model and Monte Carlo simulation on the pricing of structured products. Finally, draw up the pricing analysis for some popular financial market products.The fourth part is the bank structured financial products around the various risk categories studied, as well as risk measures, including sensitivity analysis, VaR indicators, scenario analysis and stress testing and other methods. And research was undertaken through the Delta-Gamma-Vega VaR risk hedging method and the value of law on banks and other major methods of risk management structured products. PartⅤSummary of domestic banks by the development of structured products based on the history and current situation, to conduct comprehensive analysis of the problems structured financing products for domestic banks. On the one hand analyzes the commercial banks in the product design, marketing, service problems. On the other hand discusses China's financial derivatives market developed, inadequate financial regulation and financial supervision of some issues that hinder the innovative structured products and the healthy development of China's financial market. Finally, puts forward development proposals after the analysis of problems.