2014-09-29

Smaller Chinese Banks Still Hunting for Deposits at Quarter End

The CBRC has all but banned deposit wars, but its not stopping some banks from continuing the tradition.

Relevant portion from the article below:
It is worth noting that the recent 21st Century Business Herald reporter visited a bank in a city in Hebei, issued a number of City firms cashback solicit depositors. "1 year deposit, 10,000 yuan get 80 yuan in cash, 100,000 to 500,000 get 90 yuan, more than 500,000 deposit get 100 yuan, the scene can be removed."A city in southern Hebei firm to lobby manager of a branch of the 21st century economy reported this reporter.

This phenomenon, city commercial retail business unit general manager, said this:. "This practice firm in the city which is not surprising, although regulators have long stopped, but repeated, but also reflects the existence of a certain rationality."
Reading a bank in southern Hebei, my immediate thought is Handan.

The CRBC's crackdown has had one major impact: buying deposits hasn't been this cheap in well over a year.

“存款偏离度”发酵不一 部分银行依旧季末冲量

21st Century Business Herald September last Ruqierzhi day. Previously, the CBRC jointly Ministry of Finance, the central bank issued "on the strengthening of commercial bank deposits deviation management related matters," as deposits straitjacket, restricted bank deposits deviation shall not exceed 3%. Over the past half a month, this policy banks continue to simmer.

For solicit depositors stronger medium-sized banks, many bankers interviewed have said that has not affected the business front.

"Internal assessment program not modify, or continue the task of red punch.", A large state-owned banks in southern China corporate banking department official said, "deposits caused by the high amount of red point, loan amount is high, if not red, amount less, can not compete with other banks, "a state-owned big firms southern branch of the public service of a person known as:." Now have not received any such notice. "

In addition, a local branch president of state-owned big firms also said that has not been affected by regulators file inside the line, called for continued efforts to lay the end of the quarter, "deposit war."

Many of the outlets of the four lines, the longer the chain reaction, but also to ease the impact to some extent.

Bank of China in southern China a governor told reporters: "deviation large bank outlets is difficult to control, body mass scale of billions around, big customers save millions deviation is super fast, but not so the reaction to continue. normal marketing. "

Even with a bank, the effects of different branches deposit structure is also different.

"Deposits constitute fiscal deposits, corporate deposits dominated large grassroots branches, average daily deposits more stable, less affected; If you usually depends mainly on the end of the quarter, the end point of the primary branch of red, the impact is very clear," Construction Bank One position of the public service official said.

However, with corporate deposits based grassroots branches, equally inevitable fluctuations deposit special period. "If you want to end the settlement of large enterprises, will be a substantial inflow of bank deposits, to adjust the degree of deviation, the bank will fund large turn out if the banks are kicking deposits, trying to hide the money has become a new problem." A stock line Southern China said.

In contrast, the more sensitive the strength of limited funding and outlets City firm response to the deviation of the prescribed deposit.

General Manager of Personal Banking Department central region of a city firm, told reporters: "We have recently opened head office meeting, emphasizing the red point problem, but no details out of the current practice is that the denominator of the average daily deposits do high.."

More active in the economy in Guangdong Province, a city commercial credit who said that the line where the assessment has begun to adjust the weights. Most of the bank's assessment, and include both point quarter, the bank has reduced the "de facto assessment" weight to daily based.

It is worth noting that the recent 21st Century Business Herald reporter visited part of the city in Hebei firm, issued a number of City firms cashback solicit depositors. "Keeping a regular year, 10,000 to send 80 in cash, 100,000 to 500,000 per square send 90, more than 500,000 deposit to send 100, the scene can be removed." A city in southern Hebei firm to lobby manager of a branch of the 21st century economy reported this reporter.

This phenomenon, city commercial retail business unit general manager, said this:. "This practice firm in the city which is not surprising, although regulators have long stopped, but repeated, but also reflects the existence of a certain rationality."

Compared to the previous point relevant documents repeatedly punching above specification document identifies severe penalties. The bank does not meet the requirements of the degree of deviation, the "suspend access issues three consecutive months or more," "twice a year deposit rate of over 3% deviation, reduce annual supervisory ratings", "suspend part of the business for three consecutive months and deadlines more than 90 days growth "assets.

For banking business, "notice" requirement banks must deposit at the end of the degree of deviation as a deduction items included in the performance appraisal system, the distinction between the severity of a corresponding reduction performance appraisal score.

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