Analysis On The Development And Impact Of Bank Financial Services Under The New Regulations Of Asset Management

After decades of rapid development,the asset management industry has played an active role in meeting the investment and financing needs of ordinary residents and medium-sized enterprises and also improving the social financing structure,but there still exist some problems such as irregular business development,multi-level nesting,guaranteeing payment of proceeds,circumvention of financial supervision and avoiding macro-control.In this regard,with the consent of the State Council,the People’s Bank of China,the China Banking and Insurance Regulatory Commission,the China Securities Regulatory Commission and the State Administration of Foreign Exchange issued the Guiding Opinions on Regulating the Asset Management Business of Financial Institutions(hereinafter referred to as the New Regulations of Asset Management)in April 2018,which set clear regulatory requirements for the asset management industry.As an important part of China’s asset management industry,bank wealth management business has occupied more than one third of the market for a long time.Although the new regulations were only officially implemented on Jan 1,2022,significant changes have already taken place in banks’ wealth management business after a transition period of more than three years.This paper studies the development and changes of bank financial services after the introduction of the new rules on asset management and the resulting impact.Firstly,it defines and introduces the relevant concepts and theoretical basis,and sorts out its impact on the bank financial services industry on the basis of a deep understanding of the new rules on asset management.Then take Xing Ye Bank as a case study,by analyzing the development of its financial management business before and after the introduction of the new rules,compared the development and change of its financial services;Finally,the paper analyzes the influence of the development and change of Xing Ye Bank’s financial management business under the new regulations on its deposit business,operating income and operating stability.In the analysis of the impact on the deposit business,from two aspects of quality and quantity,the impact on the quality: analysis of the introduction of new capital management regulations,Xing Ye Bank’s financial management business changes on the deposit interest rate;Effect on quantity: Using relevant chart analysis of the information technology new rules before the bank financing business on its balance,and then in order to support the results of the analysis,make the results more reliable,using VECM model analyzes the information introduced new rules before the whole on the market bank financing business impact on balance,after the new rules could take the same way,Before and after the introduction of the new rules to illustrate the impact of Xing Ye Bank financial business changes to its.In the analysis of the impact of operating income,the Xing Ye Bank’s operating income is split,respectively analyzed the impact on net interest income and non-interest net income.In the analysis of the impact of operating stability,the use of "camel" rating method for Xing Ye Bank comprehensive evaluation.This paper concludes that after the introduction of the new rules on asset management,the development and changes of Xing Ye Bank’s financial services include the decline in the circulation of financial products,the liquidation of capital protected financial products,and the establishment of special financial subsidiaries.After the issuance of the new rules on capital management,Xing Ye Bank’s financial services can no longer operate in the mode of capital pool,and can no longer invest in non-standard products through multi-layer nesting.However,the forbidden maturity mismatch and the restriction of non-standard investment make the yield of bank financial products decline.Due to the existence of substitution,the decline of the yield of wealth management products will affect the cost of the bank’s liability end,reduce the bank deposit interest rate,and thus promote the growth of Xing Ye Bank’s net interest income.In addition,after the issuance of the new rules on capital management,the rectification of financial products caused the decline in circulation,the failure of financial products caused the transfer of risks from banks to investors,and the decline of product yields,etc.,which affected the relationship between financial services and deposit balances: At the same time,the comprehensive effect of these changes has promoted the growth of its non-interest net income,and the operation stability of Xing Ye Bank has been further improved under the influence of non-standard table,operating income growth and other factors.Finally,based on the analysis of the whole paper,the author evaluates the new rules of asset management,and puts forward relevant suggestions to the regulatory authorities and commercial banks in line with the concept of improving the new rules of asset management and helping the development of bank finance industry.