Thinking About The Development Of Small And Medium-sized Commercial Bank Debt Investment Business

With continuous development of securities market among banks of China, the bond investment business of small and medium size commercial banks has developed rapidly, the investment scale has been increased year by year, and there are more and more various investment products. Currently, bond investment business has become not only the major non-credit loan profit making business for small and medium size commercial banks, but also one of the priorities for the business development of small and medium size banks. However, with the business expanding and more and more credit products being introduced into bond market, the bond investment strategy and securities risk management of small and medium size banks relatively lag behind, wihle the overall planning of profitability, risk and liquidity is obviously insufficient which has impeded the healthy growth of bond investment business to a large extent.The article uses the common current situation of bond investment business in small and medium size commercial banks as research targes, on basis of congenital advantage and disadvantages of bond investment business in small and medium commercial banks.It analys the existing problems and reasons for bond investment business in small and medium size commercial banks, and made summary and conclusion The article also proposes practicable solutions about how to make bond investment strategy, how to make effective evaluation of investment performance and how to improve risk management, these solutions will make bond investment business of small and medium size banks become more strategic and have more long-run significance.The article is composed of 4 parts: Chapter 1:analyzing the importance of bond investment business to small and medium size commercial.Chapter 2:analyzing the development of bond market among Chinese banks, the position of small and medium size banks in the bond market among banks as well as the business feature. Comparing and analyzing the advantages and shortcoming in bond business of small and medium size commercial banks.Chapter 3:analyzing the problems existing in bond investment business of small and medium size commercial banks, also particularly analyzing the causes for small and medium size commercial banks to pursue excessively high revenue, the separation of bond investment and asset-liability management, as well as lack of system effectiveness.Chapter 4:According to the problems existed in bond investment of small and medium size commercial banks and the basic principle of integrated and unified liquidity, risk and profitability,this article proposes some practical solutions for bond investment strategy, evaluation of bond performance and construction of bond risk management. Therefore, to reduce bond investment risk of small and medium size commercial banks and improve revenue efficiency, can promote steady and healthy development of bond business in small and medium size commercial banks.