Research On Market Risk Management Of Structured Financial Products In China 's Commercial Banks

Structured financial products consist of fixed income securities and financial derivatives parts, because of the high leverage of financial derivatives properties, make investors expected high yield possible. Structured financial products linked to the subject may be a stock, interest rates, exchange rates and commodities, etc. These products are linked to the subject matter of trend fluctuations, investors need to accurately determine the financial markets, it is expected high-yield structured products also generally corresponds to the potential high risk. Structured financial products benefits associated with macroeconomic environment. In 2007, is China’s commercial Banks structured financial products distribution peak, structured financial products in the high average yield this year. In this case, the commercial Banks and investors ignored the high risk of structured financial products. As the 2008 financial crisis, a lot of structured financial products "zero profit" or even "negative", when people began to realize the importance of preventing risks of structured financial products. The risks of structured financial products a lot, such as market risk, liquidity risk, credit risk, market risk is the most important is the main risk. At present our country in the aspect of structured financial products pricing research has made some progress, but in its market risk management system study is less. Therefore, the current research on risk management issues structured financial products market is very has theoretical significance and practical significance.In this paper, from the perspective of commercial Banks in China, through the theoretical analysis and case analysis method of combining the, attempts to our country commercial bank structured financial products to prevent market risk problem put forward reasonable countermeasures and Suggestions. This paper for structured finance products in our country development present situation made a presentation; And then classify the market risk for structured finance products, found the products linked to the subject matter, income structure, the duration of the product and product issuers are factors affecting the size of its market risk; From four points out the commercial banks in structured financial products market risk management issues, such as product design process, risk consciousness, does not reveal the information is not comprehensive, the lack of professional financial and risk management, and risk management system is not Perfection, etc; Instructions for market risk management program: identification, measurement, monitoring and control; Then on market risk measure VaR system is introduced; Finally from the perspective of commercial Banks, improve the product design mechanism, strengthen the information disclosure system, strengthen professional personnel training, improve the risk management system in four aspects, for our country commercial bank market risk management of structured financial products provide a reference value and operational countermeasures and Suggestions.About using VaR method to measure China’s commercial banks structured financial market risks, the article has carried on the case analysis. This article selects the type of agricultural bank of China to issue a currency peg structured financial products, the use of historical simulation method and Monte Carlo simulation method respectively to calculate the Va R value of wealth management products, to estimate the size of its market risk. The method in our country commercial bank structured financial products market risk measurement has a certain reference value.