Short-term financing bonds and medium-term notes: the competent examination and approval unit is the Association of Interbank Market Dealers, the bond issuer is a non-financial enterprise, and financial institutions participate in bond underwriting and investment, with banks as the main body. At present, securities companies are actively recruiting. The largest bond variety in China.
Corporate bonds: The competent examination and approval unit is the CSRC, the bond issuer is a listed company, securities companies participate in bond underwriting, and investors include financial institutions and individual investors.
Private debt of small and medium-sized enterprises: for the record of CSRC, without approval; Bond issuers are unlisted small and medium-sized enterprises, securities companies participate in bond underwriting, and investors are mainly financial institutions such as brokerage funds.
Corporate bonds: The competent approval unit is the National Development and Reform Commission, and the main issuers are local government financing platforms, urban investment companies and some state-owned enterprises.
It is emphasized that the first step for enterprises to issue wealth management products through banks is @meta's statement, and standby credit lines need to be obtained through bank approval. Generally speaking, banks give enterprises credit lines for approval and do not directly issue loans. Then there are different ways of playing and modes: first, there is only one financial institution and the bank participates in the mode.
Single source of funds: that is, the funds of wealth management products come from a single customer. It is usually necessary to freeze the credit line of the enterprise to issue loans directly to the enterprise through entrusted loans. This is the simplest model, which can't be satisfied, because a single customer usually doesn't invest too much money to meet the financing needs of enterprises.
Diversified sources of funds: that is, the funds of wealth management products come from many different customers. Banks listed the creditor's rights of enterprises in Beijin Institute (Beijing Financial Assets Exchange), and then delisted themselves, using wealth management products to purchase the listed creditor's rights, and using wealth management funds to realize the financing of enterprises.
Second, the participation of banks and securities companies.
After the bank issues wealth management products to raise funds, it will use the funds of wealth management products to purchase targeted asset management plans set up by brokers, and then issue loans to enterprises. Before CBRC Document No.72 was issued to regulate the cooperation between banks and credit management businesses, the role of brokers was usually assumed by trust companies.
Third, bank B+ bank A+ trust company+bank C mode (dizzy when looking at it)
The transaction mode is: 1. Trust companies issue trust loans to enterprises that need financing; 2. Bank A purchases the trust loan income right from the trust company, that is, the trust company sells the trust loan to Bank A; 3. Bank A transfers the income right of the trust loan to Bank B, that is, Bank B issues wealth management products to raise funds, and then purchases the trust loan with the wealth management products; 4. Bank C issues a letter of guarantee or repurchase commitment to Bank B. ..
In this mode, the principal and interest of bank B's wealth management products are guaranteed by bank C, and bank C issues a letter of guarantee or repurchase commitment to bank B according to the credit line approved by the enterprise that needs financing. Bank A and trust companies play a channel role in the transaction structure, and can also be replaced by the targeted asset management plan of securities firms. Moreover, due to the low cost, the targeted asset management plan of securities firms is becoming the most popular channel.
Using this model, credit assets can be transformed into interbank assets on the balance sheet of banks, which can not only avoid regulatory indicators such as loan-to-deposit ratio and capital adequacy ratio, but also reduce the provision for economic capital and loans and improve the profit level of banks. This model is more complicated, and a fake C bank may be introduced, so I won't go into details. All of the above are bank-led models. In fact, the structured teams of the fixed income departments of trust companies and securities firms also have self-operated customers, and the space for deepening cooperation with banks in structured financing in the future is worth imagining. Why are banks keen to use wealth management products to achieve off-balance-sheet loans? Because loan-to-deposit ratio, capital adequacy ratio and other regulatory indicators are controlling the loan scale of banks, the total scale of social financing is constantly expanding outside the supervision. As for the impact of this innovative business on the domestic economy, it is beyond my analysis.