It is the general trend for state-owned banks to join the ranks of establishing financial subsidiaries. Many banks have set up bank wealth management subsidiaries, which can make commercial banks more professional and standardize wealth management business and capital operation. So, what is a bank financing subsidiary? What is its function? Let's take a look at it next.

1. What is a banking subsidiary?

The bank financing subsidiary is a company with a comprehensive license of "Public Offering of Fund+Private Equity Fund+Class Trust", which mainly invests in standardized debt assets and listed stocks.

Therefore, bank wealth management products are no longer just "fixed income" products as before, but also include stock equity assets, and such products also have certain "risks".

Second, what is the role of the bank's financial subsidiary?

1. Standardize business and professional forms, make itself completely independent and form a professional business organization. Make the wealth management business develop healthily. Let's lighten the bank's asset management business and make it more focused on financing.

2. While expanding the scale of wealth management and enterprises, effectively obtain greater investment opportunities, broaden channels, lower the threshold and attract more investors to invest.

3. Commercial banks set up financial management subsidiaries, which clarify the legal status of financial management business and can reduce the cost of intermediate procedures of commercial banks.

4. As the largest financial institution with the widest coverage, banks have more management advantages and more market competitiveness than other asset management companies.

I have said so much about what is a bank financing subsidiary and what its role is. I hope it will help you. Warm reminder, financial management is risky and investment needs to be cautious.