A Case Study Of The Transformation Of The Net Worth Management Of The Wealth Management Business Of Commercial Banks

Asset management business refers to financial services such as banks,trusts,securities and other financial institutions that accept the entrustment of investors and invest and manage the assets of the entrusted investors.Among them,the asset management business of commercial banks,that is,the banking wealth management business,is currently a type of asset management business with the highest overall scale and the widest audience.The asset management industry has developed rapidly in recent years.While the scale continues to rise,it also exposes many problems such as idle funds,nesting layers,and increased leverage.On April 27,2018,the "Guiding Opinions on the Unified Supervision and Regulation of Asset Management Business of Financial Institutions",that is,the "New Asset Management Regulations," was officially released.It breaks rigid payment,prohibits maturity mismatches,removes multiple layers of nesting,and nets product value.Management and other aspects of transformation and development have made strict regulations.Since then,as the matching rules of the "New Asset Management Regulations",the China Banking and Insurance Regulatory Commission issued the "Regulations on the Supervision and Management of the Wealth Management Business of Commercial Banks",that is,the "New Financial Regulations",which set forth more specific requirements for the transformation and development of the banking wealth management business.Among them,the net value management of wealth management products(that is,adhere to the principle of fair value measurement,encourage the measurement of invested assets at market value,and allow qualified closed wealth management products to adopt amortized cost measurement)as the basic requirements in the transformation and development of asset management business,Not only will it completely change the measurement principles and methods of the underlying assets of wealth management products,it will also significantly affect the implementation of other regulatory requirements.So what kind of changes will the valuation of wealth management products' net worth management cause? What impact will the transformation of net worth management have on the wealth management business of banks? How should commercial banks actively respond and change? These are all issues that need to be resolved.This article first analyzes the regulatory requirements,theoretical basis and the logical relationship between the regulatory points of the ‘New Asset Management Regulations' and ‘Finance Management Regulations',and further points out that the net worth management is the most basic and pivotal regulatory requirement in the new regulatory regulations.Also,this paper preliminarily analyzes the possible impact of the net worth management based on the theoretical research.Secondly,this paper focuses on the transformation context of the net worth of Bank of Nanjing since 2014,and summarizes the transformation attempts and achievements it has made.Then,based on specific cases,this article analyzes and compares the evolution of valuation methods of basic assets,which is the most fundamental change in the transformation of net worth management.Research shows that,compared with the traditional valuation method combining fixed-income quotation and amortized cost method,after the underlying assets of wealth management products are measured by fair value method,on the one hand,they can reflect the product's returns and risks in a timely manner through net value fluctuations.The aspect also puts forward higher requirements on Nanjing Bank's wealth management asset portfolio management capabilities and investment research capabilities.On this basis,this article further focuses on the analysis of the current bottlenecks encountered by Nanjing Bank in the process of net worth management transformation of wealth management business,including low customer acceptance,lagging risk management system,and lack of highly sophisticated talents for investment research.In the end,this paper provides suggestions on the transformation of the net worth management of wealth management business from the aspects of customer relationship management,product design and operation,investment research team building,and optimization of organizational mechanism in light of the current situation of Nanjing Bank.