Research On The Risk Of Structured Financial Products In Chinese Commercial Banks

Along with China’s reformation and opening up,China’s economy has been growing rapidly.On the one hand, the income level of residents cintinue improving, residents’ wealth is accumulating quickly and the financial management concepts are gradually embeded in the Chinese people;On the other hand, under the background of interest rate marketization, commercial banks gradually transfer from the traditional loan business to wealth business and intermediate business.Therefore, the financial wealth management, for example, bank financial product, is becoming the most growth of the business in financial market.How to use prior planning to manage financial products as a whole, to control risk factors efficiently, to keep the financial market stable, therefore to achieve a win-win situation between commercial banks and investors are the importent questions.However, with the rapid development of the bank financial products in our country, some issuers are not good. Their risk management level is relatively low.At the same time, the risks which are not allow to ignore are hidden in the financial irregularities in the process of product sales.At present, the fact of zero or negative return occurs to structuraed financial products.This makes investors begin to notice the risk behind the structured financial products.There are differences between structured and ordinary financial products risks.Compared with ordinary financial products, structured financial products can provide a wider range of choice space, diversified investment plan.This not only promote the commercial bank profit, but also meet the demand of investors’ preferences.However, the structured financial products also cause many problems.In this paper, starting from the study of structured financial products issued by commercial banks, the basic concepts, characteristics, categories and the recent situation are discused.Furthermore, the types of structured financial products are analyzed, for example, market risk, liquidity risk, credit risk and operational risk.On the basis, this paper is trying to propose solution to deal with stuctured financial risks for regulators, commercial banks and investors from two aspects of external and internal enveroment.