Some banks are rooted in inertia and think that the more deposits they pull, the better. Other banks need liquidity support because of asset-side problems to ensure liquidity security.
Recently, the People's Bank of China issued the "Notice of the People's Bank of China on Strengthening the Management of Deposit Interest Rates" (hereinafter referred to as the "Notice"). While rectifying non-standard fixed deposit products such as interest rate calculation, the People's Bank of China guided the market interest rate pricing self-discipline mechanism to strengthen deposits. Interest rate self-discipline management, including the structured deposit guarantee rate of return into the scope of self-discipline management.
The market interest rate pricing self-discipline mechanism does not restrict all deposit products. Previously, structured deposits and various types of innovative deposits have become important products for banks to evade the constraints of the self-discipline mechanism, and then to collect reserves at high interest rates. In order to combat high interest rates, at the end of last year, regulators have explicitly called for banks to stop deposit-based interest-bearing deposit products.
Zeng Gang, the deputy director of the National Finance and Development Lab, told First Financial that supervision and strengthening of the management of deposit interest rates can improve the effectiveness of the interest rate environment and policies, guide banks to reduce the cost of liabilities, and promote a more standardized order in the interest rate market.
Structured deposit guarantee rate of return is included in the scope of self-regulatory management
The Central Bank recently issued a "Notice", which once again emphasized that all deposit-taking financial institutions need to rectify "innovative" products such as fixed deposits, advance withdrawals, and interest-bearing interest-rate calculations as required. At the same time, the People's Bank of China guided the market rate pricing self-discipline mechanism to strengthen deposit rate self-discipline. Management, including the structured deposit guarantee rate of return into the scope of self-discipline management, the deposit-type financial institutions to implement the deposit interest rate management requirements and self-discipline requirements into the MPA.
The market interest rate pricing self-discipline mechanism was established on September 24, 2013, and is a market pricing self-discipline and coordination mechanism composed of financial institutions. The self-regulatory mechanism for market interest rate pricing is subject to the relevant national interest rate management regulations. It implements self-regulatory management of financial market interest rates determined by financial institutions, such as the money market and credit market, to maintain the market's legitimate competition order and promote the healthy development of market norms.
As early as last year, the supervision has required banks to immediately stop handling related business related to the early withdrawal of time deposits and interest-based calculation, and to gradually reduce the stock of this type of business. After the end of the transition period at the end of 2020, the balance of these products will be zero.
According to market analysis, in combination with the previous requirements for prohibiting false structured deposits, the "Notice" incorporates the guaranteed return on structured deposits into self-discipline management, and at the same time incorporates the implementation of interest rate management regulations into MPA pricing behavior management. Three combos. "
The Institute of Financial Supervision analysis believes that the guaranteed income of structured deposits is included in the scope of monthly self-discipline monitoring, which means that if the guaranteed income of structured deposits of banks is too high, it will be deemed to violate the self-regulatory regulations, and the MPA's pricing behavior is a one-vote veto. , May be included in the C file subject to strict regulatory measures of the central bank. But if you want to bypass these restrictions in disguise through product design, you will also face regulatory penalties by the central bank and the CBRC for fake structured deposits.
Previously, structured deposits have become a weapon for banks to take advantage of deposits due to a number of reasons, including restrictions on bank capital protection and wealth management.
In this regard, the Financial Supervision Institute analyzed that in the past, “structured deposits” were the main focus of efforts of major commercial banks, and “fake structure” products emerged in banks. Without the guidance of the regulatory authorities, it is difficult for banks to take the initiative to abandon this method of collecting interest at high rates.
Ma Wanpeng, an analyst at Shenwan Hongyuan Securities, believes that the strict restriction on the guaranteed return rate by the central bank is based on the previous compliance and process supervision. In the return rate segment, the structured deposits are regulated and the real structure is realized, which truly reflects the structured deposits. Yield characteristics of "guaranteed floor + contingency".
High interest rate reserve or asset-side problems
Under normal circumstances, in an environment of interest rate marketization, if the interest rate transmission mechanism is effective, the deposit and loan interest rates can form a synchronous trend.
However, industry insiders pointed out that although the asset-side interest rate has been gradually reduced under the guidance of the central bank recently, the distortion of competition on the bank's liability side (deposits) has affected the transmission of monetary policy.
Among them, both the high yield inertia caused by wealth management products to residents and the reasons that banks have excessive demand for deposits and are willing to pay higher costs for various reasons.
For example, a person from a city commercial bank told First Financial reporter: "In order to compete for deposits, city commercial banks survive in the cracks. Now that the regulatory measures have come out, all products that rely on gears have been stopped, causing the phenomenon of deposit relocation. Storage difficulties. "
Zeng Gang told reporters that, on the one hand, people used to use high-yield and risk-free wealth management products in the past. The purpose of the new asset management rules is to break rigid payments and gradually fade the impact of distortions in market competition. There are higher requirements and aspirations for deposits, some of which are due to inertia of thinking, and the more deposits they draw, the better, and some banks need liquidity support because of asset-side issues to ensure liquidity security.
"Our customers are basically elderly people in their 60s. They usually do not rush to spend money. City commercial banks' high-interest rate deposit products are generally long-term. Previously, interest income was better and it was easy to attract savers. Many customers feel that they will be deposited in state-owned banks with short-term deposits and small differences in interest rates. After all, state-owned banks have high credit and convenient access, "said the aforementioned city commercial bank source.
A rational view of deposits and moving
Under the background of increasing economic downward pressure, a series of credit measures have been implemented, reducing the financing cost of the real economy and increasing support for enterprises. However, due to the impact of the cost of the debt side of the bank, there is some resistance to the decline in social financing costs.
Financial institutions are under double pressure to support the real economy and the high cost of liabilities. Many market participants have suggested that the benchmark interest rate for deposits should be lowered to reduce the cost of bank liabilities, thereby changing the status quo of poor interest rate transmission.
Recently, Liu Guoqiang, deputy governor of the central bank, stated that the benchmark deposit interest rate is a "ballast stone" for China's interest rate system and will be retained for a long time. In the future, the People's Bank of China will, in accordance with the State Council ’s deployment, take into account fundamental conditions such as economic growth and price levels, and make timely and appropriate adjustments.
However, there are also concerns that lowering the benchmark deposit interest rate will further affect the ability of commercial banks to absorb reserves. Zeng Gang believed that the phenomenon of bank deposits moving should be viewed rationally. First, banks should establish a business philosophy based on profitability. In the long run, the quality of development is superior to scale. "It is not that the more deposits, the better, the larger the scale, the better."
He said that in addition to prices, banks also need to improve comprehensive service capabilities, increase customer satisfaction and stickiness, and thereby improve the stability of deposits. "It is unstable to rely on yield alone to affect customers."
Recently, the Central Bank issued the “Notice on Doing a Good Job in Interest Rate Control in Special Periods of Epidemic Prevention and Control”, allowing banking financial institutions to raise funds by issuing special interbank certificates of deposit for epidemic prevention and control, which are specifically used to support loans from relevant enterprises for epidemic prevention and control.
At present, many banks have issued interbank certificates of deposit for disease resistance, and their issuance costs are lower than interbank certificates of deposit for the same period. Chen Ji, a senior researcher at the Bank's Financial Research Center, said previously that the first purpose of issuing certificates of deposit by banks must be to replenish funds on the debt side to support credit placement.
Zeng Gang believes that banks should improve their asset-liability management capabilities and optimize their debt structure in order to reduce the overall financing costs reasonably and effectively. For example, it can be moderated through interbank certificates of deposit and other means, and made up for by diversified and market-oriented sources of funds. "The appropriate range of active liabilities is a very important means of bank asset liability management." Zeng Gang said. (Duchuan)