Bank loan package

  • Created:
  • / Author: Aaron Lewis
Washington -- from August 20, 2013 "Chinese banks to avoid the daily bandwidth limit face hidden losses" part of the contents of


First, the picture above is the image reflects the inter bank is happening.

During the financial crisis, the actual risk is one of the main reasons causing huge losses that banks and other investors to hold assets greater than the surface risk. At that time, banks, insurance companies and other market participants to hold complex financial products seem safe, but these financial products behind it is higher risk of housing mortgage loans, eventually lead to far beyond the imagination of loss.

Analysts said the regulatory provisions, bank loan ratio is up to 75%, but so that banks can bypass the regulations.

According to the bank analysts and engaged in the packaging of this kind of loan business personnel said, this kind of loan process is as follows, a bank will stream of income and credit risk transfer of corporate loans to another bank. Transferring bank will receive a fee and the loan is recorded in the book, but don't assume any risk.

This loan registration of bank loans rather than loan company, therefore not in violation of the provisions of the banking regulatory agencies to set the proportion of loans. More importantly, because loans between banks, security is considered higher than the loan, so the banks don't allow more reserve.

Influenced by other regulations, carry out the inter bank lending to the following. First of all, be regarded as generating loans shadow banking system part of the trust company. But banks are not allowed to lend to a trust company, a company will get loans from the trust company, and then from the trust company income flow rights (i.e. the trust beneficiary right) transfer to the bank, and then from the trust company income flow rights (i.e. trust beneficiary right) transfer to the bank. And then the bank will trust beneficiary right granted to the first want to provide loans to banks.

In order to provide the loan, the bank in the inter-bank market financing. In the interbank market, small banks to deposit sufficient large bank loans, which can maintain its lending capacity.