Why do Banks Issue Wealth Management Product?

Shuoxun Zhang

<p>We build a model to answer two sets of questions. (1) What motivates banks to offer wealth management products (WMP)? (2) If a bank is actively selling WMPs, what characteristics does it exhibit? We fi nd there are at least three possible reasons for a bank to actively off er WMPs: (i)a bank is making high-return loans; (ii) a bank is able to sell WMPs with interest rates lower than its competitors; or (iii) a bank has liquidity troubles. These theoretical hypotheses are also confirmed with empirical studies.</p>

2015-10-28(Wednesday)16:40-18:00

N303, Econ Building

English

WISE & SOE

系列讲座

Weixian Cai

<p>Assistant Professor, WISE &amp; SOE, Xiamen University</p> <p>Homepage: http://www.wise.xmu.edu.cn/people/faculty/17d9773b_6c4d_4314_b35f_ba0d614e2164.html</p>

“WISE-SOE双周青年论坛”2015年秋季学期第二期（总第57讲）