Some banks' wealth management products are managed by the investment banking department, and they soon found that wealth management is also a good financing channel, so they began to do various financing projects for wealth management. In fact, the loan changed its name and earned high-end intermediary business income without occupying funds. This is the legendary shadow banking. Deposits are called wealth management products and loans are called non-standard assets in wealth management products. This business is getting bigger and bigger. It can be said that a department is indomitable and has become a small and medium-sized bank, so the trend is that this business will be separated and called the asset management department. This piece takes the buying route, because wealth management products are sold by the customer department, which mainly balances profitability and liquidity.
More high-end investment assets, that is, equity, primary market or secondary market, do little without repurchase clause, which is not in line with the bank's risk preference. To tell the truth, there are many problems in equity financing with repurchase clauses, and the risks are really high.
It seems that the investment banking department of ICBC hasn't found the right position yet? Because their financial market department and their little brother's asset management department have done it.
Commercial banks, not trust companies, have always been the dominant force in the banking-trust cooperation business.
(1) Banks issue wealth management products to raise funds and directly invest in trust plan products.
(2) Banks first lend to enterprises to form credit assets, and then transfer the credit assets to trusts to establish trust plans. Then the bank will raise funds to invest in the trust plan.
The cooperation between banks and trust companies does not stop at the financial cooperation between banks and trust companies. Since then, it has extended the modes of recommending projects to trust companies by banks, selling collective trust plans on a commission basis, and investing trust beneficiary rights with self-operated funds by banks.
Bank-trust cooperation then made rapid innovation-let more financial institutions participate in the business chain. The innovation of purchasing trust income right in bank financial planning is a typical example of its innovation.
The main operation mode of this model is: the bank first finds a large enterprise and issues a single trust loan to the enterprise that needs funds through trust, and then the bank issues wealth management products to purchase the trust loan income right of this large enterprise.