What Is Group Banking?

Bank-to-business business includes corporate e-banking, unit deposit business, credit business, institutional business, international business, entrusted housing finance, fund clearing, intermediate business, asset promotion, fund custody, etc. In popular terms, it is "the business of the unit ".

Bank-to-business

Throughout the development of the global banking industry, based on credit services, the company's business has roughly gone through three important stages: commodity flow-related services, capital flow-related services, and capital flow-related services. Correspondingly, the product portfolio has also undergone continuous and vertical deepening development. From the initial traditional businesses such as credit and settlement, a comprehensive, comprehensive and three-dimensional corporate financial service product system has gradually been formed.

First, "credit business" will, as always, be an important cornerstone of the company's banking business development. Although most domestic commercial banks have proposed the goal of transition to retail banking, there are good reasons to believe that credit business will still be the main income and profit of the company s business lines in at least the next 5-10 years. The source will still be the basis for establishing company customer relationships and conducting other company business, and will continue to serve as the important task of realizing the "1" in the "1 + N" of company line product sales.

Second, "trade finance" is a typical representative of services related to commodity flows. Banks started their business with commodity mobility servicestrade finance and settlement. Trade financing has long been a mature product in international advanced banks, but it is an emerging hot product compared to most domestic banks. Its main customers are small and medium enterprises.

When operating trade financing products, you should break through some common misunderstandings existing in domestic counterparts. In the past, trade finance was only the bank financing business supported by the International Business Department for international trade and relying on letter of credit instruments. It usually focused on the adequacy of the corporate credit and guarantee conditions. But now it has become the responsibility of a specialized trade finance department. Depending on the corporate supply chain, it takes full advantage of various credit value-added tools such as bank credit, commercial credit, and property rights. A multi-level and multi-angle trade finance product portfolio is not only applicable For business-oriented enterprises, it is also applicable to production-oriented enterprises, and many banks are downplaying corporate financial analysis and access control, and more emphasis is placed on effective control of logistics and capital flows. In addition, traditional trade financing entrusts third-party supervision, companies store goods in designated third-party warehouses (increasing the company's handling and transportation costs), and collateral must be stored in the company's location; today, advanced banks usually commission national A third-party logistics company sends a commissioner to enter the company to supervise the collateral, while allowing different geological collaterals, etc.

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I. Analysis of overall risk factors for banks' corporate business

(I) Risk analysis of loan business

1. China's commercial banks have insufficient understanding of bank loan risks. They place too much emphasis on scale and do not fully understand asset quality.

2. The proportion of loans is too high. Loans account for about 75% of bank assets, while foreign countries generally do not exceed 50%;

3. Excessive loan concentration. At present, the loans of various commercial banks in China are mainly concentrated in large cities, large projects, large enterprises, or listed companies and monopoly enterprises. In this way, many banks are chasing one enterprise and one project. The concentration of assets means the accumulation of risks. In addition, about 80% of the loans of the four major state-owned commercial banks are concentrated in state-owned enterprises, but the output value they create accounts for only 30% of the total value added of the industry, which means that more input and less output make it difficult to ensure the efficiency and timely recovery of loans. Coupled with the current "maternal fission", "golden cicada shelling", bankruptcy and bankruptcy evasion behaviors during the current process of corporate transformation, the bank's credit risk has been unprecedentedly increased;

4. Non-performing loans remain high. The large amount of non-performing loans in China's commercial banks has seriously affected their normal operations and development. Although the state has issued a series of policies including write-offs, divestitures, and debt-to-equity swaps in recent years, and some positive changes have taken place in non-performing loans, the increase in non-performing loans is still relatively common.

5. The "three investigations" system for loans cannot be strictly enforced, the risk liability mechanism is not perfect, the rights, responsibilities, and benefits are asymmetric, blindly issued loan indicators, irregular mortgage loans, and banks' difficulty in implementing mortgage rights.

(II) Risk analysis of collateral

1. Valuation of collateral is worthwhile. When a commercial bank issues a mortgage loan, the appraisal department overvalues the appraisal value of the collateral, so that when the credit assets are at risk, the final loss will be borne by the bank.

2. When a bank accepts a mortgage loan, sometimes in order to maintain a good customer relationship, under the condition that the mortgage documents are incomplete, it has gone through the mortgage loan formalities with the customer based on its creditworthiness. However, when the mortgage loan cannot be recovered, the mortgage loan processing right cannot be exercised because the mortgage loan documents are not complete.

(III) Risk analysis of intermediate business

From the perspective of development trends, the proportion of commercial banks' intermediate business income will continue to increase, but some commercial banks blindly carry out intermediate business, and do not treat intermediate business as a new profit growth point at all, but treat it as a traditional business competition. An ancillary means of the company, it deviates from the original intention of developing intermediate business to increase profits. In addition, the use of bills used in intermediary businesses to steal credit funds has also exacerbated the risks of the banking industry.

Feasibility analysis of bank-to-business risk management

(I) Risk analysis of loan business

1. Type of loan business

(1) Short-term working capital loans

Provide RMB working capital loans and foreign currency working capital loans to corporate legal persons who have opened current accounts with banks. Provide borrowers with liquidity for production and operation. The term of a loan generally does not exceed one year. Loan methods are: credit loans and secured loans, of which secured loans include:

Guaranteed loan: The third party promises to issue a loan with joint and several responsibilities when the borrower fails to repay the loan.

Mortgage: A loan issued with the property of the borrower or a third party as collateral.

Pledge loan: a loan issued by the borrower / third party's movable property / right as pledge

(2) Medium-term working capital loans

Provide RMB liquidity loans and foreign currency liquidity loans to corporate legal entities that have opened transactions with banks. Provide borrowers with liquidity for production and operation. Loan methods are: credit loans and secured loans, of which secured loans include:

Guaranteed loan: The third party promises to issue a loan with joint and several responsibilities when the borrower fails to repay the loan.

Mortgage: A loan issued with the property of the borrower or a third party as collateral. Pledge loan: a loan issued by the borrower / third party's movable property / right as pledge

(3) Project loan

The loan object is the project contractor, which raises funds and runs the project company established for the project. The types of loans are:

Technology loan

Key project loans: energy construction loans, infrastructure construction loans, power construction loans, syndicated loans, various special loans

Loan guarantee:

Use the assets of the project company as security for loans

Cash flow and income of the project company as the source of repayment

(4) Real estate development loan

The loan object is a real estate development enterprise, which provides the company's funds in the real estate development / marketing process. The types of loans include housing development loans, commercial housing development loans, land development loans, working capital loans for supporting real estate development, and comprehensive building mortgages.

(5) Trade financing business

International Trade Finance Business

The financing object is a corporate legal person that has the qualifications for foreign trade business operation and opens a foreign currency transaction settlement account with our bank.

The financing method is to verify the credit line of international trade financing

The types of financing include issuance of certificates, import bills, export bills, export discounts, package lending, secured loans, factoring

Domestic bill business: bill acceptance bill discount

2. Feasibility analysis of loan business risk management

There are two types of risk management for the above loan business types:

(1) Credit loans

Our company can evaluate the credit rating of the credit loan object as a reference standard for the bank to issue loans.

(2) Mortgage loan

Our company can evaluate the collateral and make a detailed analysis of its insurance content.

(II) Risk analysis of collateral

1. The evaluation report made by the internal evaluation department of the bank must be reviewed by the bank audit department. Here, the independence and professionalism of the auditors must be ensured. If the internal evaluation results are doubtful, an external evaluation agency should be hired to re-evaluate and make accurate and fair conclusions.

2. The bank shall strengthen the management of the mortgaged documents, do everything in accordance with regulations, and do not make commitments that violate principles.

(III) Risk analysis of intermediate business

1. Types of intermediate business

(1) RMB settlement business

Including banker's cashier's check business, commercial money order business, check business, collection and acceptance business, entrusted collection business, bank draft, currency exchange business, notice deposit business, agreed deposit business, entrusted agency business, national debit card business.

(2) International settlement business

Including foreign exchange remittances, foreign exchange inward remittances, bare ticket collections, foreign currency credit card withdrawals, collection of foreign currency credit cards, sales of traveler's checks, payment of foreign currency traveler's checks, foreign currency exchange, settlement of foreign exchange, foreign exchange sales, import issuance, import documentary Collection, guarantee delivery, notice of export letter of credit, negotiation of export letter of credit review, export documentary collection, foreign exchange guarantee, trade financing, credit investigation, foreign exchange trading on behalf of customers, foreign exchange market consultation, USD inward remittance path

(3) Life insurance agency business

In recent years, agency insurance sales have become a "top priority" for banks to carry out intermediary business, and the sale of insurance through banks has also become an indispensable sales channel for insurance companies. Some emerging insurance companies sell insurance through banks as a proportion of total premiums. Even as high as 70%.

3. Feasibility analysis of intermediate business risk management

(1) Settlement business

An insurance brokerage company can conduct professional review of the insurance policy involved in the international settlement process for the bank, and make a professional explanation of its doubts.

(2) Life insurance agency business

The following problems will arise in the life insurance agency business: 1. Bank sales staff will inevitably mislead when they sell insurance due to their lack of corresponding qualities and driven by their interests, which will lead to the intensification of customer withdrawals and frequent complaints. Because the customer bought insurance at the bank, the bank only recognized the bank if there was a problem, which caused the bank's operating risk to rise. 2. In the agency insurance sales, the bank gave it to the insurance company after promoting the business. However, due to the asymmetric information, it is difficult for the bank to have an accurate grasp of the overall business volume. Dilemma for banks.

Therefore, the cooperation between insurance brokerage companies and banks can be in the following three aspects: First, to help banks establish effective business management systems and regulate the current bancassurance business. Such as improving the business reconciliation process between banks and insurance companies, establishing management methods for business documents, standardizing settlement procedures and rules such as premiums, and performing statistics on withdrawal of insurance business. The second is to help banks establish a customer service-oriented training system and cultivate professional financial services teams. Third, the two parties of the bank broker cooperate to promote product development that meets the needs of bank customers. The biggest feature of this cooperation lies in giving full play to the role of professional insurance intermediaries, streamlining the relationship between banks and insurance companies, and improving the efficiency of bancassurance sales channels.