In recent years, representative commercial banks use FPA and AUM to supplement or even replace the traditional loan and deposit indicators to evaluate the operation of a bank's assets and liabilities. (1) FPA (finance product aggregate) refers to the total financing scale provided by a bank to customers, which is not limited to the traditional on balance sheet loans. AUM (asset under management) refers to the total amount of customer managed assets, which refers to the total amount of various investable assets that meet the investment needs of retail customers, including deposits / wealth management provided for retail customers and public funds / trust / insurance products sold on a commission basis. This part focuses on the macro interpretation of the index system, and the next part makes further verification from the micro dimension.
Understand FPA and AUM in three dimensions. (1) Multiple indicators: institutions have consistent identification of AUM indicators, while FPA interpretation is not uniform. It is generally believed that FPA can be divided into traditional credit (including bill) financing and non-traditional financing. The latter includes the total of various capital sources such as non-standard financing / financial funds / financial leasing / bond underwriting, including institutions looking for various capital sources for corporate customers. (2) Mirror each other: both indicators reflect the concept of comprehensive finance. By establishing a unified index system, it can guide the internal assessment of subsequent commercial banks and reflect the principle of "one institution / one customer". (3) Macro mapping: FPA draws on the connotation of social financing scale (excluding resident financing). From the perspective of social finance indicators, more than 90% of China's FPA structure is dominated by debt funds, of which 60% is credit financing, which indicates that the financing of the real economy is still dominated by debt financing, and the intensity of equity financing is still relatively small.
FPA and AUM systems are the micro embodiment of China's high-quality development financial model. (1) The financial system is influenced by the origin of continental / maritime law system. The former focuses on indirect financing, and the latter is easier to develop the equity market. In 2020, the assets of global commercial banks / insurance companies and pension / shadow banks accounted for 40%: 30%: 30% respectively. (2) Match between FPA and AUM on the establishment of high-quality financial institutions: relative to loans, FPA expansion meets the needs of enterprise financing structure adjustment, technological and asset light transformation. Relative to deposits, AUM expansion not only meets the requirements of residents' asset allocation migration and population aging trend, but also helps to disperse risks to the whole society. (3) China's financing structure adjustment began in 2013, but at the beginning of the period, it mainly focused on shadow banking financing and interbank chain transmission, and made substantial progress after the promulgation of the new asset management regulations in 2018. In this context, asset management products focusing on bank financial management, on the one hand, correct the idling and disenchantment of funds, eliminate regulatory arbitrage, control the level of leverage and shorten the capital transmission chain; On the other hand, promote net worth / long-term / public offering and standardization, and the real expansion of asset management products in line with the characteristics of direct financing.
The expansion of asset management scale meets the Aum index needs of residents and drives the growth of FPA scale in the banking system. Taking the net worth products dominated by bank financial management and public funds (the current scale is about 60 trillion yuan by 2022) as the standard, the two ratios of "asset management AUM / nominal GDP" and "asset management AUM / m2" in China are about four times lower than those in the United States. In the long term, China's net worth asset management market is still expanding.
