Analysis On The Structured Deposit Risk Of Minsheng Bank

The emergence of China Everbright Bank's first structured deposit in 2001 added a new force to the Financial product market of China's commercial banks.However,due to the lack of independent design and pricing capabilities of commercial banks in the early stages of development,the rigid structure of foreign banks did not meet the conditions of China's financial market.With the fuzzy positioning of structured deposits by regulatory authorities,many arbitrage behaviors have appeared in the market,and the development of structured deposits is very slow and irregular.as of 2019,the scale of China's structural deposits has exceeded 11 trillion yuan.At the same time,w ith the rapid development of China's economy,the income of residents has continued to increase,people's financial management concepts have gradually strengthened,and people's demand for financial management products has become greater and greater.Driven by the market gap created by the withdrawal of rigid redemption products,the huge pressure to collect reserves and the fierce competition of Internet financial products,commercial banks have seized the structured deposit market to increase their capacity to absorb reserves.In recent years,small and medium-sized banks have become the main force in the structured deposit market,accounting for nearly two-thirds of the market size.Therefore,the risk analysis of small and medium-sized banks' structured deposits has important research significance.This paper uses a combination of qualitative and quantitative methods for research.First,the research results of domestic and foreign researches on structured deposits in terms of pricing,investment returns,risks,and classification are summarized.Secondly,from the perspective of the product issuance structure,income method,rate of return,and operation mode of the structured deposits of the Minsheng Bank,the status of the structured deposits of the Minsheng Bank was analyzed.Individual users issue RMB structured deposits.Thirdly,by identifying the risk factors of structural deposits of Minsheng Bank,and taking a structural deposit linked to the euro to the US dollar as an example,the VaR method is used for empirical analysis and the VaR value is obtained.The research results obtained are as follows:(1)The probability of achieving the highest rate of return on structured deposits of Minsheng Bank is low,and there is a problem of unreasonable design.(2)The probability that Minsheng Bank's structured deposits will obtain the highest rate of return is low,which is mainly caused by market risk,followed by operational risk,and legal risk and liquidity risk have less impact on the product itself.Combining the above research conclusions,this paper proposes risk prevention measures for structural deposits from the perspective of Minsheng Bank.First,improve the risk management system from three aspects: improving the organizational structure of risk management,standardizing business processes,and advanced risk management technologies;second,enhancing disclosure of wealth management product information to achieve information symmetry between customers and banks;finally,targeting Four risks make feasible suggestions.