What is FPA (Total Customer Financing)?

FPA refers to the total financing scale provided by a bank to customers, not limited to traditional on-balance-sheet loans, representing a typical comprehensive financial concept.

FPA primarily aims to meet all financing needs of corporate banking clients, specifically including various funding sources such as loans, discounts, non-standard financing, wealth management funds, bond underwriting, and matching services provided to meet corporate clients' financing needs - essentially finding diverse funding channels for corporate clients.

What Does the Emergence of FPA Signify?

1. Recognizing the Importance of Corporate Banking

While retail banking is extremely important and has become a key transformation direction for banks, the significance of corporate banking is also evident. For most banks, corporate banking fundamentally supports the liquidity function of the entire banking system.

2. Recognizing the Limitations of Traditional Corporate Banking

The proposal of FPA indicates that, under conditions of limited credit resources, focusing on the concept of total customer financing and adopting multiple approaches - including direct equity investment, wealth management funding, proprietary investment, matching services, bill financing, and bond underwriting - can help compensate for the shortcomings of traditional credit services, enhance customer loyalty, and facilitate the shift from asset holding to asset management.

3. Recognizing the Necessity of Comprehensive Financial Services

Comprehensive financial services mainly represent an all-round financial service capability for clients, specifically including product creation capability, investment management capability, asset management capability, asset circulation capability, off-balance-sheet matching capability, and underwriting/distribution capability.

4. Recognizing the Urgency of Customer-Centric Rather Than Product-Centric Approach

Adopting a customer-centric rather than single-product perspective means providing "integrated commercial and investment banking" services through light businesses such as bond underwriting, wealth management, matching services, and M&A syndication, aiming to become transactional resource integrators and accelerate the transition from asset holding to asset management.