A Research On Mezzanine Financing Of China's Commercial Banks

At present,China's financial mixed operation,financial disintermediation and interest rate marketization have become a trend.The customer financing needs are more diversified,coupled with the strong rise of internet finance,so the traditional commercial banks,whose core business is the credit,face unprecedented pressure.The commercial banks have to speed up the transformation of the operating mechanism,open up new areas of business,find new sources of profit,Therefore they may become invincible in the fierce market competition.As a financing product between equity and debt,mezzanine financing is just in line with the needs of commercial banks.Mezzanine financing has two characteristics.The most important one is that the investors can get a more stable debt income,and may also benefit from the appreciation of the equity.Another characteristic is flexible,it can be freely designed between equity and debt.In recent years,commercial banks have become the important participants with the advantages of funds,channels and customers in the field of mezzanine financing,which has been originated in the United States and is still a financial innovation business in China.However,due to the limitations of China's laws and regulations,commercial banks can't operate directly by commercial banks.So they have to cooperate with the other financial institutes,or access to more financial licenses.But these ways virtually increase the transaction costs and operational risks.The first chapter of this paper introduces background and significance of mezzanine financing business in commercial banks,and illustrates the ideas and methods of the research.The second chapter introduces the related theories and research literature of mezzanine financing.The third chapter introduces the concept,development history,advantages,disadvantages and applicable fields.The fourth chapter elaborates the external pressure and internal power of China's commercial banks.The fifth chapter,from the macro level,analyzes the main obstacles and countermeasures,and briefly introduces three development paths of commercial banks.The sixth chapter analyzes the transaction structure of mezzanine financing from the micro level.The seventh chapter further analyzes the application of mezzanine financing through a case.The eighth chapter summarizes the full text.The main research results of this paper are as follows:First,the characteristics of mezzanine financing and the needs of commercial banks are combined to analyze the reasons of mezzanine financing of commercial banks.The second is to analyze the general transaction structure of mezzanine financing of commercial banks,and the structure can be applied to similar financing business.The third is to analyze the problem when commercial banks is carrying out of mezzanine financing,and puts forward some management recommendations.