The background of commercial banks' leverage is that after the large-scale credit supply ended after the financial crisis in 2008, credit began to tighten in 2009, and many projects lacked follow-up funds. In order to avoid the assessment of regulatory indicators, banks expand their credit business in disguised form through bank-credit cooperation.

During the period from 20 10 to 20 13, some commercial banks realized the realization of off-balance sheet assets through inter-bank business and wealth management business by means of bank trust, bank insurance, repurchase and sale, etc.

In 20 13, China Banking Regulatory Commission issued Document No.8 to restrict the investment in non-standard assets, and there were three new changes in interbank and wealth management business: First, funds began to shift from non-standard assets to standardized assets such as bonds, and arbitrage was realized by extending the duration, reducing credit and increasing leverage. Second, wealth management funds entered the secondary market through capital allocation, reaching its peak in the first half of 20 15.

After the stock market crash in the second half of 20 15, the scale declined slightly, but it is still an important investment of bank wealth management funds. Thirdly, with the transformation of local government financing methods, a large number of government guidance funds, government platform funds and PPP projects have emerged. Bank wealth management products enter government guidance funds, government platforms and PPP projects. The banking industry gradually adopts equity financing or quasi-equity financing from simple debt financing. Banks have broken through the original business scope of commercial banks and entered a broader market through wealth management products. Objectively, the complexity and diversity of the financial system have increased significantly, and the difficulty of risk management and supervision has also increased.