| Commercial banks begin to pay more attention on the wealth management business because of the financial completion and the need to change the business models. The gradual opening of China banking market and more modern financial tools make commercial banks innovate and develop more new wealth management products better. Structured Deposit is the most flexible, individual product which can fulfill the customers' need based on their own risk and revenue requirements. Structured Deposit, namely is the bundling investment product which contains both riskless fixed income investment and derivatives tools. As a complex and popular investment product, Structured Deposit contains a lot of key points such as pricing, operation, margins and risk control. This essay begins with the comprehensive understanding and classification of Structured Deposit, analyzes the background and pricing of Structured Deposit. Also, this essay explains the operation model of Structured Deposit, addresses the different risk and revenue concurred by the banks and the investors. This essay concludes that the risk and revenue concurred by the banks and the investors is not comparable and equal based on the above research. In the end, this essay proposes some steps which both the banks and the regulator should take to enhance the product designing and risk control. |
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