Study On Risk Analysis And Management Of Bank Financial Products In Inflationary Environment

Since from2010. Chinese CPI continued to rise, capital market is facing a more complex situation. In recent years, the bank financial product market presents explosive growth, as well short term and ultra-short term product, hook and offbeat products which are with high rate of return on investment to fight against inflation emerge in an endless stream. However, with the variety of products expiring in succession, scandals about financial products zero income, negative earnings, extension, and huge loss were exploded ceaselessly, the huge risk hidden behind the explosive growth of the bank financial product has become the focus of public attention. Researching on the bank financial products market risk and management is very necessary under inflation.Firstly, after elaborating the financial product design elements and classification, we analyze present development situation of the bank financial products based on inflation, and then further analyze the impact of inflation on the financial products market. On one hand, under the influence of sluggish stock market and regulated real estate market, liquidity of capital market is excessive, which push the inflation to be more serious. On the other hand, the "negative interest rate" and the tightening monetary policy stimulate the demands of wealth inflation-proofing and appreciation for resident and deposit fighting for bank. Under the pressures both from the market and regulatory, commercial banks take financial products as an effective weapon to fight for deposit, and add the quantity issued for high return products to cater to the anti-inflation investment demand of the public. To a certain extent inflation stimulate the fast development of the bank financial products market, but it also brings risk shocks which we can’t ignore.Secondly, on the basis of comprehensive analysis of risk structure faced by commercial banks and investors, we deeply analyze the risk conduction path from inflation, such as capital market, the real economy and the monetary policy, which brings serious risk impact to the bank financial products market.Finally, for the risk performance and management of the status quo of the financial products market in China, it research on how to timely and effectively deal with the risk encountered by the financial products market in inflationary environment from the perspective of commercial banks and regulatory authorities in this paper. Several suggestions are respectively putted forward such as to strengthen commercial banks’ risk management culture, to prevent systemic risk erupting in the round, and to establish the bank financial products supervision system which takes the protection of investors as the center, to introduce the independent third party for evaluation of risk, which are in favor of promoting the bank financial products market to develop healthily and orderly in China, and also have great realistic significance.