Behind the "slow hand" of large-denomination certificates of deposit: What is the solution to the problem of regular bank deposits?

　　Sino-Singapore Jingwei, November 9th (Wei Wei) Ms. Zhang, who lives in Xicheng District, Beijing, recently wanted to save a sum of money. When she opened the China Construction Bank mobile APP to inquire, she couldn't believe her eyes. Purchased certificates of deposit".

"Why are there no large deposit certificates?" She hurriedly called the branch to ask, and the staff told her that the quota was limited, and it would be gone when sold out.

　　At about 9:10 a.m. on November 9, Ms. Zhang opened the CCB APP and found that there were 1-year large-denomination certificates of deposit for sale, but the annual interest rate was only 2%.

Source of CCB large-denomination certificates of deposit page: provided by respondents

　　Since the beginning of this year, many investors have turned their attention to deposit products such as large-denomination certificates of deposit due to the combination of factors such as the overall decline in market interest rates and the breaking of financial management after the implementation of new asset management regulations.

　　A recent interview with Sino-Singapore Jingwei found that the quota of some banks' large-denomination certificates of deposit is tight, and the amount released is often "secondary", especially the 3-year large-denomination certificate of deposit is a scarce commodity, and some banks only open quotas for a few whitelisted customers .

"Only whitelisted customers can make an appointment"

　　Recently, Xu Ziang (pseudonym), who lives in Shijiazhuang, Hebei Province, had a certificate of deposit in a bank that expired. After searching hard, he could not find a product with a higher interest rate than before. In the end, he chose a city commercial bank to deposit a large-value certificate of deposit. "This bank has a slightly higher interest rate than other banks, and also gave a little gift, you can choose your own rice, noodles, oil and eggs."

　　"This year's financial management is not very good, and there are more customers who deposit large-value certificates of deposit or time deposits." said a customer manager at a branch of a state-owned bank in Hebei Province.

The customer manager of a branch of a joint-stock bank in Beijing also told Sino-Singapore Jingwei that due to the decline in wealth management income and concerns about the economic situation, customers prefer to choose long-term stable deposit products.

　　Since the beginning of this year, the interest rates of deposit products, including large-denomination certificates of deposit, have been lowered several times.

　　Despite falling interest rates, large-denomination certificates of deposit are still "hard to find", and many banks have tightened the quota for large-denomination certificates of deposit.

Regarding the problems encountered by Ms. Zhang, Sino-Singapore Jingwei called a branch of CCB in Xicheng District, Beijing as a customer. The staff of the bank said that the

.

　　Sino-Singapore Jingwei found that 3-year large-denomination certificates of deposit have become scarce.

For example, a search for "large-denomination certificates of deposit" on the Bank of China APP shows that the bank has no 3-year products on sale, the products with the highest deposit period are only 2 years, the annual interest rate is only 2.5%, and the remaining quota is insufficient.

A staff member at a branch of the Bank of China in Xicheng District, Beijing said that the three-year large-denomination certificates of deposit may be released at 9 am on Tuesday and Friday, and if they are sold out, they may be gone.

　　The Bank of Communications APP also does not have 3-year large-denomination certificates of deposit products. The annual interest rates of large-denomination certificates of deposit purchased from 200,000 yuan and 300,000 yuan with 2-year terms are 2.65% and 2.70%, respectively.

As for why there is no 3-year large-denomination certificate of deposit, the bank's customer service staff explained, "

"

　　The account manager of a branch of the Bank of Communications in Xicheng District said that there is currently no public quota. If it is placed, it can be seen on the customer's mobile phone.

Bank of China and Bank of Communications large-denomination certificates of deposit Product source: Bank of China and Bank of Communications mobile APP

The proportion of fixed deposits increased

　　Since the beginning of this year, the phenomenon of regularization of bank deposits has become more prominent.

　　Recently, the three quarterly reports of listed banks in 2022 have been disclosed one after another. Sino-Singapore Jingwei selected 8 banks that disclosed deposit-taking data, including Industrial and Commercial Bank of China, Agricultural Bank of China, China Construction Bank, Bank of Communications, China Merchants Bank, Shanghai Pudong Development Bank, Industrial Bank and Ping An Bank.

The data shows that the amount of deposits absorbed by the 8 banks has increased compared with the end of the previous year, with 6 banks with an increase of more than 10%, and 2 banks with an increase of less than 10%, namely Shanghai Pudong Development Bank and Industrial Bank.

　　From the data disclosed by the 8 banks, it can be seen that the proportion of time deposits of each bank has increased compared with the end of the previous year, and at the same time, the proportion of demand deposits has decreased compared with the end of the previous year.

　　From the perspective of the proportion of demand deposits, as of the end of September 2022, China Merchants Bank has the highest proportion of demand deposits, reaching 61.11%, and Bank of Communications has the lowest proportion of demand deposits, only 34.93%.

In addition, the demand deposits of Ping An Bank and Industrial Bank also accounted for less than 40%, 35.03% and 37.05% respectively.

　　In terms of changes in demand deposits compared with the end of the previous year, Bank of Communications had the largest decline, with demand deposits falling by 6.44 percentage points compared with the end of the previous year; Ping An Bank had the smallest decline, down 2.30 percentage points compared with the end of the previous year.

　　The interest rate of bank time deposits is higher than that of demand deposits, so the increase in the proportion of time deposits also means an increase in the cost of interest payment by banks.

For example, the Bank of Communications stated that the

　　At the same time, due to the decline in loan interest rates this year, banks' net interest margins have also narrowed.

According to data disclosed by the six major state-owned banks and 9 A-share listed banks, as of the end of September 2022, among the 15 banks, only Bank of China’s net interest margin increased slightly by 0.02 percentage points compared with the end of the previous year, and the remaining 14 net interest margins The difference decreased from the end of the previous year.

　　China Construction Bank pointed out in its third quarterly report that as of the end of September, the bank's net interest margin was 1.86%, and its net interest margin (net interest margin) was 2.05%, down 0.08 and 0.07 percentage points from the same period last year, mainly due to loan yields. Affected by factors such as interest rate cuts, it continued to decline, while the cost of deposits increased.

　　Ping An Bank said in its third quarterly report that from January to September 2022, the bank’s net interest margin was 2.77%, down 4 basis points from the same period last year; the average cost of liabilities was 2.15%, down 7 basis points from the same period last year, of

Dealing with deposit regularization

　　"Deposit is the foundation of a successful business. Whether every bank is in an economic upswing or downswing, deposits are basically the foundation of their lives." At the recent 2022 third quarter performance briefing of Bank of Nanjing, the bank's corporate finance Yu Houbao, general manager of the department, said so.

"Deposit time deposit is a long-standing and difficult problem for banks to solve in a certain stage."

Chen Xiaohui, general manager of the retail finance department of Bank of Nanjing, pointed out that with the expected decline in interest rates in the future, retail customers are more willing to allocate medium and long-term time deposits to lock in long-term investment income.

　　Everbright Securities Wang Yifeng's research team believes that due to factors such as the epidemic, residents' consumption and enterprises' willingness to invest has declined, the demand for currency storage has increased, and the capital market is not booming, resulting in micro-subject asset allocation. More inclined to banks with higher security Time deposits, corporate and resident deposits are all time-based.

At the same time, it does not rule out the idling of funds caused by the inversion of loan and deposit interest rates of some enterprises under the circumstance of a significant decline in loan interest rates.

　　In solving the problem of deposit regularization, various banks have also made moves.

Chen Xiaohui pointed out that with the promotion of Bank of Nanjing's big retail strategy reform 2.0, Bank of Nanjing will use financial assets to drive the growth of deposits, achieve growth in scale, optimize structure and reduce interest rates.

In addition, the newly established 100 outlets will bring a large number of basic customers to Bank of Nanjing, and the increase in settlement of basic customers will bring more deposits of demand deposits.

　　Fu Wanjun, executive director and president of China Everbright Bank, once pointed out at the 2022 interim results conference that the

　　"In the second half of the year, in response to the increase in demand deposits of various branches and operating units, Everbright Bank issued some special incentives to guide financial institutions to control the cost of liabilities in the second half of the year." Fu Wanjun said.

　　Dong Ximiao, chief researcher of China Merchants Union Finance, said that the continuous increase in household deposits has improved the resilience of China's economic development and enhanced the ability of the household sector to resist risks.

In the next step, targeted measures should be taken, such as timely adjustment of epidemic prevention and control policies and measures, further stabilizing the macroeconomic market, and enriching residents' investment and wealth management channels, so as to stabilize residents' expectations and confidence, and further boost residents' consumption and investment.

　　Dong Ximiao pointed out that it is necessary to cultivate the concept of value investment and long-term investment, vigorously develop the capital market and wealth management market, develop enterprise annuity, occupational annuity, health and pension insurance business, innovate financial products, and promote the effective transformation of household savings into long-term asset management market through multiple channels. funds.

(For more reporting clues, please contact Wei Wei, the author of this article: vivi1257@163.com) (Sino-Singapore Jingwei APP)

(The opinions in this article are for reference only and do not constitute investment advice. Investment is risky, and you need to be cautious when entering the market.)

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