The Research On The Design Of Structured Financial Product Of China’s Commercial Bank

The appearance and development of structured financial products in China come fromthe advance of the general income level so that people have residual money to invest. Whilethe low level of interest rate can not accord with the expectation of people, structuredfinancial products compatibly fit for the demand of people. But, correspondingly someproblems created such as the design of structured financial products, response to risk andthe rate of return. All these need to be researched and improved. Under these circumstances,this paper focus on solve these problems.In this paper, through an overview of structured financial products, and the analysis ofthe current situation of the design and so on, I find out some current problems of thestructural financial products, and then I propose appropriate recommendations forimprovement. First, this paper describes the definition, classification features, develophistory and risk of structured financial products in details. Then, followed by thecommentary analysis of the current situation of commercial banks’ structured financialproducts in China from the consideration of basic elements, the basic processes, pricing,and a classic case. Thus, leads to the existence of the problem of China’s commercial bankson the issue of the design of structured financial products, such as lack of innovation, lackof diversity, lack of internal control and risk mechanism of commercial banks, lack offinance professionals, and lack of pricing ability. Finally, this paper’s suggestions forimprovement are: the diversity of the design of product, improve risk control ability,training and the introduction of financial professionals, improve the pricing ability, improvethe financial markets, strengthen supervision and information disclosure.