That the money trust business, banking, securities nerve

Interest in the trust market is hot in the financial newspaper sinyuncheol Korea News] low interest rates. Bank neulrimyeonseo the Trust sold extensively I set out in pursuit of profit in the securities industry has been regulated since the sokalyi for the trust business.

◇ major banks all increased sales Trust

According to the banks, Shinhan, Kookmin, one trusts, etc. We first quarter balance of the four banks increased by 193 trillion 557.2 billion won to 30.6056 trillion won a year ago (18.8%) than (162.9516 trillion won). Financial full trust sutakaek has increased the end of last year 715,000,000,000,114 jo 5000 eokwon 3000 million (19%). Banks accounted for 49.7% of the total size of the trust market is 355800000000000.

The number of branches increased ease of contact with customers than in securities relatively free banking in the trust that the market will turn their eyes to the trust market as a new source of revenue from low interest rates. Trust is a commodity that financial institutions are financial institutions through the operation and management of customer assets can reap higher returns than the fee the customer to the bank yejeokgeum. Trust yen configuration includes all investment instruments such as stocks and bonds, funds.

Banks will be in accordance with the business strategy of strengthening non-interest income I set out to strengthen trust products before and after 2015. Recent popular product is the equity-linked trusts (ELT) operating in the goal of median earnings - Medium risk. If the fees are high and almost two times more than other products of the market situation like early repayment up to 1% of the sales cycle is faster turnover fee is shortened to six months.

This year's first quarter sales of ELT major commercial banks have already achieved nearly half of last year's performance. If our banks are come about due to the increase in non-interest income is similar to one of the plates pumped ELT (2.0493 trillion won) the last annual earnings for three months of the reasons. Shinhan Bank sold 1.807 trillion won nearly 70% of the previous year billings. National Bank has shown its strengths in trust business sold off more than five trillion won for the first quarter only to sell ELT.

Trust the market reached a new all-ELT is expected to grow to more than three times that of last year. Deongdalah commissions of financial institutions that handle trust business also increases naturally. KB Financial Group earned 124.6 billion won for only the first quarter trust fees. It is a trust fees exceeded the 100 billion won is the first time. This is a 56.9% level compared to the surge period (794 million), such as year, it increased 38.3% bihaeseodo the quarter (901 billion). Share of total revenue (520.6 billion won) was enlarged by 24%. Our Bank has earned one billion 340 Trust fees also finance 54 billion. SFG is working to earn 37.8 billion showing a relative disadvantage in comparison to the trust business scale.

◇ If the bank's trust displacement phenomenon

However, there is a ssolrin trust products sell ELT banks may need attention. Higher yields are also like the stock market conditions are the displacement phenomenon as deep linking past weeks Securities ELS excess funds because even cases driven by this damage.

Complaints of securities firms operating skills are aware that the fair competition, not because there might be better securities regulatory side.

According to the Korea Financial Investment Association accounted for in September last year, based on the bank's 61.3% of the total assets of the domestic banking industry (2603 billion), but more on equity (ROE) are securities (6.87%) to 2.08%, the asset management company (12.44%) low. The result is the ability to earn money, the bank is inferior. Total assets of gravity of securities, asset management is 9.4% (401 trillion).

Here banks have a viscosity complaint seeking the Trust Business Act removed. But trust business is currently being applied to the Capital Markets Act, the position is even suggesting the banks make a separate Trust Business Act enable the trust business of banking. June the securities industry that must meet a very large investment bank (IB) has launched a complaint is weighted banks have significantly geoduja revenue from trust business in recent aware that behind the competition because regulations. Nerves of banks and securities expected to increase this year, rising more trust business scale.



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