A Study On Personal Wealth Management Risk In Small And Medium-sized Banks

With the strengthening of China’s internationalization of finance and theaccelerated pace of financial innovation in the commercial banks, also with theincreasing of China’s per capita income levels and the continued accumulation ofsingle-family wealth, China’s savings deposits of residents has reached to30.7166trillion. According to the investigation from some relevant organizations, themillionaires in China have amounted to1,11million till the end of2010.In2010, economic growth has provoked the rise of the per capita savings rate,coupled with the yuan continued strong, which resulted in the surge of the number ofhouseholds with assets over one million dollar in China,31%over the previous year.The domestic rich has more demand to the professional wealth management, while thetraditional bank channels cannot meet the needs. Therefore, the personal wealthmanagement service caused by people’s needs has gradually developed.At present, the wealth management business in domestic small andmedium-sized commercial bank is just emerging and gradually carried out on the fasttrack of development. A majority of the commercial banks only focus on how toaccelerate the number of financial products, how to compete for the clients with otherbanks and how to improve the intermediary business revenue brought by the products,but focus little on the produce itself or the risk, and also avoid the importance anddwell on the trivial. This will undoubtedly accumulate the risk of small andmedia-sized commercial banks, which will be a huge shock to the entire financialindustry if there are problems.This paper will take the current situation of the domestic small and media-sizedcommercial banks and the personal wealth management business in Baoshang Bankthat the author is working in as study case to analyze the risk existed in small andmedia-sized commercial banks. Meanwhile, this paper will discuss the domestic smalland medium-sized commercial banks risk prevention strategies to solve the bottleneckproblem in the personal wealth management business development.The author hope some superficial personal opinion of the individual to promotethe health of the domestic small and medium-sized commercial banks bank wealthmanagement business...