With the promotion of independent licensing and standardized operation of bank franchise departments in different places, bank capital business franchise institutions have successively landed in Shanghai. Recently, according to the official website of the China Banking and Insurance Regulatory Commission, the Shanghai Banking and Insurance Regulatory Bureau issued a reply announcement, agreeing to the opening of the China Merchants Bank Co.Ltd(600036) capital operation center and Issuing the financial license.
Not long ago, China Zheshang Bank Co.Ltd(601916) was also approved to build a capital operation center in Shanghai. In addition, since this year, Agricultural Bank Of China Limited(601288) , Guangdong Development Bank and Hengfeng bank have obtained the “license” for the establishment of specialized institutions for capital business, and they are all stationed in Shanghai.
In the view of insiders, the establishment of capital operation centers in different places will help banks expand their business scope and improve their operation efficiency. As for why we chose Shanghai, the practitioners interviewed by the reporter said that this is mainly because, as an international financial center, Shanghai has multiple advantages in financial market, policy, talent and institutional agglomeration, which is conducive to institutions to better carry out business and financial innovation.
several joint-stock banks and state-owned banks entered
Since the approval of preparation in May, the establishment of capital operation center of China Merchants Bank has made new progress. Recently, the Shanghai Banking and Insurance Regulatory Bureau issued a reply and announced that it agreed to the opening of China Merchants Bank Co.Ltd(600036) capital operation center, and approved the qualifications of Dai Zhiying, general manager of China Merchants Bank Co.Ltd(600036) capital operation center, Wang Yu, deputy general manager of China Merchants Bank Co.Ltd(600036) capital operation center, Yu Shu, deputy general manager of China Merchants Bank Co.Ltd(600036) capital operation center and general manager assistant of Wanhai Airlines China Merchants Bank Co.Ltd(600036) capital operation center.
The so-called capital operation center refers to the specialized organization of capital business. Its predecessor is usually the financial market department and capital trading department of banks. Its main business scope covers domestic and foreign currency bond investment, bond underwriting and distribution, agency bond settlement, foreign exchange and precious metal trading and customer trading, asset custody business and money market business.
The announcement shows that the business scope of China Merchants Bank Co.Ltd(600036) capital operation center is: money market business, bond business, foreign exchange business, precious metal business, financial derivatives business, and other capital operation businesses approved by Bank Of China Limited(601988) Insurance Regulatory Commission and authorized by China Merchants Bank Co.Ltd(600036) . The reporter learned that the fund operation center of China Merchants Bank was established on the basis of the original financial market department of China Merchants Bank.
Before the China Merchants Bank Co.Ltd(600036) capital operation center was approved for opening, the China Zheshang Bank Co.Ltd(601916) request for instructions on preparing for the establishment of capital operation center was also approved by the CBRC, which indicates that the China Zheshang Bank Co.Ltd(601916) capital operation center will enter the preparation stage and will be completed within 6 months from the date of approval.
China Zheshang Bank Co.Ltd(601916) said that in the future, it will actively explore product innovation and service innovation in the financial market from the aspects of transaction mode, product innovation, channel construction, system platform and domestic and foreign linkage, constantly enrich various transaction business qualifications and product lines, accelerate the application of financial technology, and build a ficc (fixed income, currency and commodity) comprehensive trading platform faster and better, We will continue to improve the agency trading service capacity of the financial market and help China’s financial industry open up in both directions.
In addition to the above two banks, since this year, with the promotion of independent licensing and standardized operation of bank franchise departments in different places, Agricultural Bank Of China Limited(601288) , Guangdong Development Bank and Hengfeng bank have been successively approved to prepare for the construction of capital operation center in Shanghai.
Among them, Agricultural Bank Of China Limited(601288) capital operation center is transformed into a branch level franchise institution by merging Shanghai management department and Shanghai Branch of financial market department. Its business scope includes bond trading, agency and proprietary precious metal business and financial derivatives business. However, it is worth noting that this approval was issued in March this year. According to relevant regulations, the preparatory work should be completed within six months. But so far, there is no further information on the preparation of the institution.
A person in charge of the capital operation center of a city commercial bank told reporters that for banks, the establishment of a full-time fund operation organization will help to improve the efficiency of the bank’s capital use and further expand the scope of capital business; At the same time, through the effective allocation of inter-bank liability side funds, we can alleviate the debt pressure of banks, strengthen asset liability management and improve profitability.
China Everbright Bank Company Limited Co.Ltd(601818) financial market analyst Zhou Maohua also said that under the background that China’s regulatory authorities strengthen the independent licensing and standardized operation and supervision of bank franchise departments in different places, the establishment of bank franchise capital operation center can further expand business and profit space, expand step by step from traditional deposit and loan business to financial market business, and cultivate new profit growth points, Improve the quality of asset liability management.
why does the tide of establishing fund professional institutions rise again
According to incomplete statistics, since the establishment of the first bank capital operation center ” Industrial Bank Co.Ltd(601166) capital operation center” in 2004, up to now, a total of 26 banks in China have been approved to operate independently. Among them, urban commercial banks and rural commercial banks are the main force.
It is reported that there are 19 specialized fund business institutions established by small and medium-sized banks, including 16 urban commercial banks and 3 rural commercial banks; Among the joint-stock banks, Industrial Bank Co.Ltd(601166) , Ping An Bank Co.Ltd(000001) , China Merchants Bank Co.Ltd(600036) , Guangdong Development Bank, Hengfeng bank, China Zheshang Bank Co.Ltd(601916) were approved; Only Agricultural Bank Of China Limited(601288) of the state-owned enterprises were approved.
It is worth noting that most of the capital operation centers were approved in 2018 and 2019, and were basically established by urban rural commercial banks; This year, however, the banking industry has started to set up capital operation centers again. Unlike in the past, this round of entrants are all national commercial banks, such as joint-stock banks and large state-owned banks.
Zhou Maohua believes that the accession of national commercial banks will increase market competition to a certain extent. On the other hand, it will also help the development of small and medium-sized banking business. “Some homogeneous business competition is inevitable, but more market participants also create more diversified market demand, improve the depth and breadth of the market and transaction activity, and contribute to the development of relevant businesses of small and medium-sized banks.”
In addition, in the view of insiders, this year, large state-owned banks and joint-stock banks have set up capital business franchise institutions in Shanghai, which is the further implementation of regulatory requirements.
In January 2018, the former CBRC issued the notice on further deepening the rectification of banking market chaos, The act of “setting up branches and outlets without approval, including non local business departments, business departments, management departments, representative offices, offices, business centers, customer centers, business teams, etc., and engaging in business activities” was included in the work focus of rectifying the chaos in the banking market in that year. This means that banks must be licensed to expand their business in other places.
Subsequently, the cbcirc also issued the guidance on regulating non licensed institutions in different places of banking financial institutions, saying that the existing non licensed institutions in different places of banking financial institutions should make planned rectification during the transition period. Newly established non local licensed institutions shall strictly perform the administrative examination and approval procedures, and newly established non operating institutions shall strictly perform the reporting obligations.
In this context, small and medium-sized bank operating institutions operating in different places have withdrawn one after another, returned to the local area, or applied for the establishment of franchise institutions in Shanghai. Today, the establishment of non local franchise institutions in the industry is accelerating, not only the capital operation center has ushered in more troops, but also private banking franchise institutions have made progress. Recently, the CBRC approved the opening of Industrial Bank Co.Ltd(601166) private bank, which is the only private bank franchise approved to open in the past decade.
It is also worth mentioning that from the point of view of the location of the capital operation center, Shanghai is favored, and most banks land it in Shanghai. The above-mentioned person in charge of the capital operation center of urban commercial banks told reporters that this is mainly because Shanghai has a relatively mature financial environment, and the financial factor market ranks in the forefront of the country. At the same time, the agglomeration advantages of financial institutions are obvious, which is conducive to institutions to innovate financial market business and enhance market sensitivity.
China Zheshang Bank Co.Ltd(601916) also said that Shanghai has the location of an “international financial center” and the advantages of policy, talent, information and institutional agglomeration. Under the high-quality soil, China Zheshang Bank Co.Ltd(601916) the establishment of a capital operation center in Shanghai will obtain sustained momentum in the standardized operation of capital business, the improvement of capital business operation and management level and market competitiveness, accelerate the realization of innovation and transformation, deeply participate in the innovation of products and services in the financial factor market, deeply cultivate the “Yangtze River Delta” base camp and better serve the real economy.
(First Finance)
