Nancai fast comments: How to view supervision emphasizing the strict control of urban commercial banks' wealth management business scale

Recently, many urban commercial banks have received a prompt letter from the territorial regulatory authorities to emphasize the "strict control of the size of the wealth management business". From the perspective of regulatory trends, the management of the wealth management business of the city commercial bank, and even compression will become the theme of financial supervision within a period of time. The surface reason is that the current cash management products of various types of urban commercial banks are not standardized, but the deep reason is that most urban commercial banks themselves do not have the ability to invest. Systemic risk.

The city commercial bank originated from the urban credit cooperatives. Most of the city commercial banks have not yet established a sound modern financial enterprise governance system, let alone have professional investment capabilities. Cash management products require that the risks are very low, but the reasons for market competition, the homogeneity of cash management products is relatively outstanding. Various urban commercial banks have to compete for the return rate provided by cash management products to attract funds to make large -scale. In order to pursue the return rate of some city merchants, they will configure some asset classes with higher risk factor. If there is a problem in corporate governance or out of the risk of morality, it is likely to cause risk incidents of wealth management products that they manage.

Once a single city commercial bank is managed, there will be inextricable connections between financial products to prevent potential chain reactions. Supervision now requires that the scale of city commercial banks to control the wealth management business is considered from the perspective of preventing local financial risks, and mainly considers the advance in advance. In the future, urban commercial banks may develop differentiated formats according to their investment management capabilities. City commercial banks with investment management capabilities can continue to develop through financial management business through financial management business. Urban commercial banks without investment management capabilities will become a simple deposit channel, and its liabilities may belong to other financial institutions for management. City Commercial Bank may also form some alliance organizations and form investment platforms. Banks with investment capabilities in the system uniformly export investment management capabilities for other banks. This also means that participants in the wealth management market will have a reshuffle, and resources will gather to the head institutions.

For urban commercial banks, in order to maintain your wealth management business, we must strengthen the construction of asset management capabilities. Most urban commercial banks are located in third- and fourth -tier cities, and it is difficult to attract excellent investment talents, and it is naturally disadvantaged in human resources. In the past, many urban commercial banks set up investment management centers and other forms to carry out talent layout in first -tier cities, which is a way to solve the bottleneck of human resources. However, the construction of the talent echelon of the city commercial bank itself is inseparable from its internal management, promotion system, and modern corporate governance system. The management methods of institutions in the third- and fourth -tier cities can be used to manage financial investment talents in first -tier cities. This is a place where urban commercial banks are particularly noteworthy in expanding their wealth management business.

(The author is a senior practitioner in the capital market)

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