Research On The Development Of Asset Custody Business Of Commercial Banks In China

In China custody system first applied to the field of mutual fund in1998,through the development of 18 years,the custody business already becomes one of the important parts of Chinese finance system nowadays.In the future,the custody business still faces a lot of challenges,for example,how to improve the ability and quality of the services.Innovation never stop poped out in the modern society and the needs of customers varied from time to time,the custody service of commercial banks also needs to reach a new height.This paper gives advices to the commercial banks how to provide a high-efficient custody services.In China the conception of "custody service" is not exactly the same with the foreign countries.It not only provides safekeeping for a customer's property but also provides co-trustee services under written agreement.The development of custody business doesn't come with the increasing of the capital of commercial banks and the charge of custody business can directly adds income of commercial banks.Because of the advantage of custody business,many commercial banks take the custody business very serious.Commercial banks' traditional business promotes the development of custody business and custody business also makes benefits to the traditional business.In the recent years the construction of marketing economy never stops,national wealth keeps accumulated,asset management business is in the stage of booming and the custody system penetrates every corner of economic and financial field.Different from having a long history in the foreign countries,custody business only started in 1998 in China,but it develops really fast in the last decade.We are so proud to make such amazing achievement in such a short time,in the mean time we also need to face.the fact that there are still a lot of unresolved problems which cannot be ignored.This paper gives some tactics and strategies to the better development of custody business.First of all,the investment of the technology needs to be increased so it can improve efficiency obviously.Secondly,innovation of the services can never stop to meet the different needs of the customers.Thirdly the commercial banks should pay attention to build a global custody net and system in the background of globalization.Last but not least,the risk controlling must be always put on the top in the whole custody business.