Study On The Asset Custody Business Of Commercial Banks In China

Assets custody is an institutional arrangement. It often maintains the balance of thetrustee, administrator, and the client. First, the ownership belongs to the client. Second, theadministrator owns the rights of management. Last, the trustee has the rights of fundkeeping. With the development of investment funds securities, trusts, bank financing,equity investments and other credit areas, assets custody has become a safety valve of assetmanagement, investment and capital transactions. It plays an important role in protectingthe interests of investors and maintaining social integrity system. Assets custody also hasbecome an important platform and tool under capital constraints of commercial banks toenhance financial services capabilities because it will bring the bank intermediate businessincome, deposits and customers, offer financial services indirectly and does not use the riskassets.Asset custody business has played an important role in the process of transition of majorcommercial banks. However, with the further reform of the financial industry and theformation of the trend of market-oriented interest rate, all of these trades such as banks,securities, and trust have changed a lot. The changes will no doubt influence the assetcustody business.This argument will survey the existing conditions of asset custody business forcommercial banks first, then analyze the new character and direction of asset custody,conclude how to solve the problem, and give some suggestion based on the situation of theAbank in the end.