Bank wealth management business
Asset business
Asset business is the main source of income for commercial banks.
1, loan business-the most important asset business of commercial banks.
1) Credit loan:
Credit loan refers to a loan that relies entirely on the borrower's reputation and does not provide any collateral. This is a capital loan.
(1) ordinary loan limit:
Enterprises sign informal agreements with banks to determine loans. Within the limit, enterprises can obtain loan support from banks at any time, and the validity period of the limit is generally not more than 90 days. The interest rate of loans within the ordinary loan amount fluctuates and is linked to the preferential interest rate of banks.
(2) Overdraft loan:
Banks provide loans to customers, allowing them to overdraw their accounts. Providing this convenience is regarded as an "additional obligation" beyond the contract undertaken by the bank to its customers.
(3) Standby loan commitment:
Standby loan commitment is a more formal and legally binding agreement. When a bank signs a formal contract with an enterprise, the bank promises to provide corresponding loans to the enterprise within the prescribed time limit and limit, and the enterprise provides expenses for the commitment of the bank.
(4) Consumer loans:
Consumer loans are loans issued to consumers for purchasing durable consumer goods or paying other expenses. Commercial banks should conduct various examinations when providing such loans to customers.
(5) Discounted bills loans:
Bill discount loan refers to the customer submitting the unexpired bill to the bank, and the bank deducts the interest from the discount date to the maturity date to get cash.
2) Mortgage loan:
There are several types of mortgage loans.
(1) Inventory loan. Inventory loan, also known as commodity loan, is a short-term loan secured by enterprise deposits and loans or commodities.
(2) Customer account loan. Short-term loans issued by banks with accounts receivable as collateral are called "customer account loans". This kind of loan is generally a continuous credit agreement.
(3) Securities loans. In addition to accounts receivable and inventory as collateral, many corporate loans issued by banks are pledged by various securities, especially stocks and bonds issued by companies and enterprises. This kind of loan is called "securities loan".
(4) Real estate mortgage loan. Usually refers to loans secured by real estate or enterprise equipment.
3) secured loan:
Guaranteed loan refers to a loan with a guarantee issued by a third party. A letter of guarantee is a contract document in which a bank guarantees a loan to a borrower, which stipulates the rights and obligations of the bank and the guarantor.
As long as the bank obtains the standard form guarantee signed by the guarantor, it can issue loans to the borrower. Therefore, the letter of guarantee is the simplest form of guarantee acceptable to banks.
4) Loan securitization:
Loan securitization refers to the process that commercial banks convert loans into securities through certain procedures. The specific way is: commercial banks combine all kinds of loans with poor liquidity into several asset pools and sell them to professional financing companies (special purpose companies), and then the financing companies issue asset-backed securities with these asset pools as guarantees. Such asset-backed securities can also be sold to investors through the securities issuance market or private placement. The funds recovered from the sale of securities can be used as a new source of funds for commercial banks to issue other loans.
2. Investment business:
The investment business of commercial banks refers to the activities of banks to buy securities. Investment is an important asset business of commercial banks and one of the main sources of bank income.
The investment business of commercial banks can be divided into domestic securities investment and international securities investment according to different objects. Domestic securities investment can be roughly divided into three types, namely government securities investment, local government securities investment and enterprise securities investment.
Securities issued by the national government can be divided into two types according to different sales methods, one is called publicly sold securities, and the other is called privately sold securities.
Government bonds purchased by commercial banks include government bonds, medium-term bonds and long-term bonds.
1) Treasury bills. The national debt is short-term government bonds with a maturity of less than one year.
2) medium and long-term bonds. Medium and long-term bonds are a kind of bonds issued by the state to meet the capital needs of infrastructure investment. Generally speaking, they have higher interest rates and longer maturities, so they are better investment targets for commercial banks.