1in may, 1995, Dai Xianglong, governor of the people's bank of China, put forward two reform measures in view of the financing difficulties of China's securities firms: first, allowing qualified securities firms to enter the interbank lending market and bond repurchase market; The second is to allow qualified securities companies to lend to banks through service ticket pledge (Financial Research 1999No. 10). ) 1998, insurance companies are allowed to participate in the inter-bank bond market. 1999 the CIRC issued the administrative measures for insurance companies to purchase central enterprise bonds, linking insurance companies with securities companies. After several years of reform, banks, securities and insurance have gradually expanded the outline of the alliance for us and created a new financial era.
First, the feasibility analysis of banking, securities and insurance alliances
Institutional innovation is one of the main factors in the development of modern finance. With China's imminent accession to the WTO, the pace of opening up the financial industry will be further accelerated. China financial institutions must continue to reform the financial system if they want to be invincible in the competition. At the same time, for the reasons of China's securities and insurance companies, it is necessary and possible to establish an alliance of banks, securities and insurance.
(A) securities companies have narrow financing channels. As a financial enterprise, securities firms are engaged in underwriting the issuance of shares by listed companies; Engaged in M&A intermediary business and served as planning consultant for M&A enterprises; Engaged in the self-operated business of buying and selling securities with its own funds to obtain profits, and also engaged in the brokerage business of collecting commissions to facilitate investors to complete transactions. These are bound to have huge capital needs. Foreign funds are relatively small. According to the past regulations, brokers in China could not borrow money from banks, issue bonds or buy back government bonds in the interbank market. In fact, brokers have only one external financing channel and can only borrow money in the interbank market for one day. This kind of overnight borrowing is like a drop in the bucket, which has little impact on the long-term development of securities firms.
The shortage of funds puts brokers at risk. Brokerage risk refers to the risk generated in the process of raising and using funds, that is, the possibility of losses caused by uncertainty, which is specifically manifested as: (1) liquidity risk, which refers to the lack of liquidity in the financial structure of brokers due to the low liquidity ratio. When the business is unfavorable, brokers lack sufficient liquidity and fall into a capital turnover crisis because financial products cannot be quickly realized. According to statistics, by the end of 1996, none of the top ten securities companies in China had a liquidity ratio close to 90%, while Morgan in the United States had a liquidity ratio of 98%. (2) Capital adequacy risk. In China, the maximum ratio of net assets to liabilities of securities companies is 10: 1. However, the net assets ratio of some small and medium-sized brokers is too high. Once the operation is difficult, these brokers will first fall into insolvency and even face greater risk of capital adequacy ratio.
(2) Insurance needs to broaden channels. With the improvement of national income and the enhancement of Chinese people's insurance awareness, China's insurance industry has made great progress in recent years, and the premium income of various insurance companies has increased substantially every year. 197 China premium income107.2 billion yuan, an annual increase of 20% compared with 19%. 1998, the premium income of China was124.7 billion yuan, an increase of 14% over the previous year, and the growth rate was very fast. According to the forecast of relevant departments, the total income of China insurance industry will probably exceed 200 billion yuan before 2000, and the market potential will reach 250 billion yuan. Such a huge fund is facing the contradiction between the limitation of capital operation mode, the intensification of investment income and company competition, and investors' demand for higher return on insurance investment. Long-term life insurance funds have two basic characteristics: savings and deferred payment of expected premiums. Due to the long time interval between payment and payment, in order to ensure the payment for several years or even decades and meet the expected needs of the insured, insurance companies must preserve and increase the value of insurance funds. Therefore, maintaining and increasing the value of insurance funds is the need of insurance itself, and the fundamental way to maintain and increase the value is to make full use of insurance funds and broaden the investment channels of insurance funds.
For a long time, the use of insurance funds in China has been restricted and can only be deposited in banks. In the past two years, it has been relaxed, and it is limited to buying and selling government bonds and financial bonds. Therefore, in China, the difference between the interest on deposits and debts and the predetermined interest rate of insurance policies has become the main source of income for insurance companies. Although the proportion of insurance companies investing in treasury bonds is expanding at present, due to the small scale of treasury bonds, the scale and proportion of investment are limited, and the funds of investment banks still account for a certain proportion. In this way, since 1997, with the seven downward adjustments of the interest rate of bank savings deposits, it has brought great losses to insurance companies. In the long run, it will shake the solvency of insurance companies. With the development of world economic integration, the pace of China's accession to the WTO is accelerating, which requires all member countries to play their cards in accordance with the rules of the WTO, that is, China's insurance industry should accelerate the pace of opening up. Lower the income standard and improve the investment income, so as to improve their core competitiveness in the compulsory insurance industry. In order to solve the phenomenon that the interest rate of bank deposits is lowered, which leads to the narrowing or even inversion of the spread of insurance funds, the key to solve the spread inversion of insurance companies and its long-term development in the future is to effectively use multi-channel funds and improve the rate of return on funds. In countries with developed market economy, the accumulation and financing capacity of the insurance industry is second only to that of the banking industry. For example, American insurance companies account for more than one-third of their financial market business. Therefore, in the long run, the use of funds in China's insurance industry needs a great development both in form and means.
(3) The scope of banking business needs to be broadened. Since 2000, financial regulators have encouraged commercial banks and insurance companies to carry out business innovation and agency business. For insurance business and securities business, banking business can be expanded in the following aspects:
1. More than 80% of the insurance business of foreign banks is handled through market intermediaries, that is, agent brokers. China should also make full use of the characteristics of extensive banking business, relatively high personnel quality and familiarity with the insurance industry to vigorously develop insurance agency business.
2. With the development of electronic network technology, banks and insurance companies can share network resources. Insurance companies can choose to use the customer resources and information database owned by banks, and banks can serve as financial consultants of insurance companies and provide custody services for funds.
3. Insurance companies can provide insurance services for consumer credit, personal mortgage loans, automobile mortgage loans and other banking products.
As a kind of securities, insurance policy can be used to effectively pledge bank loans. How to combine savings certificates with insurance policies and funds can also be studied.
5. In financing business, insurance companies are large depositors of banks and may become the main investors of financial claims of banks in the future. Banks and insurance companies can raise funds through borrowing and bond repurchase to improve the liquidity and yield of funds.
6. Banks and securities can interact in marketing and enjoy the marketing network and customer resources. Banks have a broad customer base and branch networks, and can use the existing networks to develop securities business, fund business and insurance business.
Two, securities, insurance, banking alliance model analysis
Through the feasibility analysis of the alliance among the above three, it is necessary for us to put forward specific alliance methods.
(A) the choice of insurance funds and securities market alliance. Since 1997, the interest rate of RMB savings deposits has been lowered seven times, among which the interest rate of one-year bank deposits has dropped by 7%, and the interest rate of three-year five-year deposits has also dropped by the same extent, with an unprecedented decline. Compared with the current bank deposit interest rate, there is an obvious phenomenon of interest rate inversion in insurance companies, and the application environment of insurance funds is getting worse and worse, and the insurance industry is facing unprecedented difficulties. The voice of expanding the use channels of long-term life insurance funds in the industry is growing. At the same time, there are still some problems in China stock market, such as small scale and lack of stable sources of funds. How to solve the above problems has been concerned by the government and the securities industry and has become an urgent problem for managers.
China's insurance funds can be invested in the following ways:
1. Implement asset-liability ratio management. Determine the rational use structure of insurance funds according to the use cycle of funds to ensure the safety and efficiency of funds. Short-term high-definition investment business, such as commercial paper, is used for short-term liabilities such as unearned liability reserve and outstanding claims reserve; Except for a small amount of medium-and long-term liabilities, most of the personal insurance reserves can be used for medium-and long-term investments, such as government bonds, financial bonds and corporate bonds. General reserve and underwriting surplus are the most suitable funds for medium and long-term investment, and you can buy high-quality stocks, real estate and mortgage loans in the secondary market.
2. Insurance companies directly purchase securities funds. That is, to subscribe for or buy various securities investment funds in the primary market and the secondary market, the insurance authorities at the same level should strictly limit the investment ratio to ensure the safety and efficiency of insurance funds and protect the interests of investors.
3. Establish a securities investment insurance fund. Securities investment insurance fund is the main operation mode for developed countries to solve the capital investment channels of insurance companies. Considering the actual situation in China, qualified insurance companies can be allowed to set up securities investment insurance funds, and the amount of capital issued by them can be determined according to a certain proportion of their total assets. Its way can be initiated by securities companies and trust and investment companies to set up new insurance fund management companies, or you can choose established fund management companies.
(B) the choice of alliance between banks and insurance companies. Once the insurance market in China is opened to the outside world, foreign insurance companies will inevitably have an impact on China National Insurance Company by virtue of their advantages in asset strength, marketing means and management technology. With the increase in the use of funds by insurance companies and the improvement of risk awareness, the cooperation between the insurance industry and commercial banks is no longer limited to simply collecting premiums and striving for deposits, mainly in the following aspects:
1. Financial cooperation. At present, the State Council has announced that insurance funds can indirectly enter the stock market through securities investment funds, and the People's Bank of China has also made a decision that commercial banks can try out agreement deposits with insurance companies. As far as life insurance is concerned, life insurance payment is not as unpredictable as property insurance and liability insurance, and the investment strategy mainly focuses on the long-term stable growth of value, so it reflects positively on the agreement deposit business opened by commercial banks. Moreover, in the process of integrating with international practice, insurance companies will withdraw some funds from the four major commercial banks to avoid the risk of centralized control of funds. Banks should seize this opportunity and make full use of the powerful means of opening agreement deposits to carry out financial cooperation with life insurance companies.
2. Business cooperation. Foreign life insurance products have completely changed from savings products to investment products, and domestic life insurance companies are also exploring and striving for variety innovation. Recently, the life insurance company launched a very attractive product. Because of its unique investment and financial management function on the basis of insurance protection, this product has attracted a group of investment-conscious policyholders. Banks should strengthen cooperation with life insurance companies in product development and marketing in combination with the development of private wealth management business. At the same time, China's commercial banks can make use of the advantages of outlets to vigorously carry out insurance agency business and increase insurance fund deposits and corresponding operating income.
3. Technical cooperation. Banks should use life insurance companies to introduce foreign advanced management experience and marketing methods, speed up technological innovation opportunities, develop technical support systems by issuing joint cards with life insurance companies, expand telephone banking and online banking services, establish long-term mutually beneficial cooperative relations, and strive for two customer groups.
(3) The choice of alliance mode between banks and brokers. At present, the cooperation between banks and securities companies in investment banking has made a good start and accumulated successful experience in bridge loan. In the liquidation of securities transactions, banks can apply for the liquidation qualification of stock exchanges. On the basis of developing the above business, Chinese banks should expand their banking and investment banking business from a broader field:
1. Develop asset securities business. Asset securities business is the process of transforming current and future financial assets that generate income and cash flow into securities that can be sold and circulated in the capital market. In the process of securities trading, the original owner (promoter) sells the assets to the carrier (issuer) established for the purpose of securitization. The issuer uses the cash generated by the assets as collateral to issue asset-backed securities that can be circulated in the secondary market to investors in order to purchase the assets transferred by the original owner, and the carrier trustee pays the investors with the cash flow generated by the transfer of assets. This business can improve the liquidity of bank assets and provide new ideas for the management of bank assets and liabilities. Banks can provide securitized assets for securities companies, and evaluate and plan securitized assets, while securities companies can play a role in the overall planning, planning and innovation of trading tools and securitized assets.
2. Develop fund custody business. At present, China's fund industry has made great progress, such as securities investment funds, social welfare funds and social security funds in the stock market, which have all been transformed into market-oriented operations. For the sake of credit, this kind of funds very much hope that banks will enter. Specific practice: the fund signs a fund management agreement with the brokerage firm, and at the same time requires the brokerage firm to open an escrow account in the bank to change and operate, so as to prevent risks. Banks can explore this business, use the bank's account management function and credit to bridge the gap between customers and brokers, collect handling fees from them and increase deposits at the same time.
3. Financing business of listed companies. When the company demands liquidity, banks can provide bridge loan guaranteed by securities companies to provide services such as collection and settlement of shares for listed companies; In the process of backdoor or shell listing, banks can cooperate with securities companies to help backdoor or shell companies choose shell source companies in the capital market and help plan their operation plans, and provide financial and project information support for backdoor or shell companies within the scope permitted by the state; When a listed company issues shares, the securities company, as the underwriter of the rights issue, the bank can participate in the design of the rights issue plan and the recommendation of the rights issue project, and provide guarantee for bridge loan and the raising of rights issue funds; When a company shares at the same time, banks can provide services such as recommending simultaneous purchase of projects and leveraged financing.
Three. Concluding remarks
When the huge amount of bank credit funds can't find the loan target, when the deposit interest rate of commercial banks drops again and again, the whole capital market obviously has a situation of oversupply, but the financing of securities firms has a crisis; The premium income of China's insurance companies has increased substantially every year, but the huge funds cannot be fully preserved or increased because of the narrow financing channels; At the same time, the business scope of China's commercial banks is narrow, which fails to give full play to its characteristics of wide network and large amount of information. Banks, securities and insurance are contradictory and complementary in the capital market. Therefore, we can find an effective chain to link them and give full play to their respective advantages. (National Research Information)
Further reading: How to buy insurance, which is good, and teach you how to avoid these "pits" of insurance.