Risk Of Commercial Banks Participate Inter-bank Bond Market

In this paper, in order to grasp the scope of commercial banks on the OTC bond market analysis, China’s inter-bank bond market issues in detail. In this paper, the inter-bank bond market as the main object of study. For now, China’s banking industry or in traditional deposits, loans, settlement based business, interest income is the main source of profit commercial banks, savings and loan spreads and loan size basically determines the overall current Chinese commercial banks profitability. Request because the banking system security, profitability, liquidity requirements, as well as monetary policy in recent years, the bank’s core capital adequacy ratio, the state is often the size of loans to commercial banks strictly limit the scale. In this case, after the statutory deposit reserve and preserve the necessary liquidity, capital of commercial banks to use in addition to the loan principal is an investment business. And under the "People’s Republic of China Commercial Banks", the state investment scope has a strict definition of commercial banks, commercial banks in the territory of People’s Republic of China provides not engage in trust investment and stock business, shall not be invested in non-occupied real estate, not to non-bank financial institutions and enterprises. Therefore, in addition to loans to the moment, China’s largest commercial bank assets are configured bonds, policy financial bonds, corporate bonds dominated bonds. In recent years, China’s financial sector to indirect financing and strict controls on deposit and lending rates of the two conditions, along with the economic growth and the demand for bank credit funds through scale expansion to maximize profits growth model, our deposits and loans of commercial banks in recent years has been growing rapidly. Under the loan-deposit ratio and the national macro-control of the lending constraints, the size of commercial bank bonds also increased. According to statistics, there is a range of commercial banks to invest in bonds of a big difference, large state-owned commercial banks, bond investment scope economies are more comprehensive than the joint-stock commercial banks; inter-bank bond market policies of the functional performance of increasingly evident. Through the above analysis, this paper a unified market, market regulation, on the basis of the principle of creditor protection, proposed to improve our inter-bank bond market recommendations.