CBIRC Unveils New Deposit Rules

CBIRC adjusted its calculation for month end regulatory compliance.

iFeng: 存款新规来了!银行人哭诉:不冲存款还得拉存款
Circular 48 requires that commercial banks should strengthen the stability management of deposits and restrict the “end of time” of deposits at the end of the month. The degree of deviation of the deposit at the end of a commercial bank must not exceed 4%.

The degree of deposit deviation at the end of the month = (each deposit on the last day of the month - average daily deposit of the month) / average daily deposit of this month * 100%.

This adjustment is the most important change in this document. The upward adjustment of the degree of deviation also means that the supervisory requirements for deviation from the indicator are relaxed, which relieves the pressure on the bank at the end of the month.

At the same time, in order to simplify the calculation method, the same index calculation standard is used for the end of the season and the end of the non-season months.

A Shanghai Branch of the China Banking Regulatory Bureau stated to the brokerage Chinese reporter that the previous indicator of the degree of deviation in deposits played an important role in constraining deposits at the end of the month, but the calculation of the degree of deviation of deposits at the end of the season was complicated and the actual inspection process was very difficult. . However, this time simplified the calculation of the degree of deviation of the end of the quarter deposit, and provided a reasonable basis for taking regulatory measures.
Bankers don't think it will have a large impact on their need or ability to attract deposits.
Although the supervisory departments are well-intentioned and hard-working, they hope to restrain deposits from their roots. However, a number of grassroots employees all believe that whether the 48th version can really break the “point of rush” in deposits remains to be seen.

"A few years ago, the supervisory authority issued a document to restrict the bank's end-of-month deposits, but the Bank has also been reviewing the deposits at the end of the quarter," said a staff member of a branch of the Eastern Province.

However, rushing deposits and pulling deposits are still different concepts. Although the direction of supervision is conducive to restricting the impulse of banks to flush deposits, for banks, the task of pulling deposits has always been arduous. More importantly, the industry generally believes that under the current background of tight financial supervision and off-balance sheet operations, banks have returned to “bank deposits” and the competition for deposits has become increasingly fierce.

Wang Jian, chief bank analyst of Guosen Securities, said that in the context of strict industry supervision, the interbank business contracted and the cost of interbank liabilities was also high. Deposits as a core liability not only have relatively low interest rates, but also have some regulatory advantages (such as When calculating some regulatory indicators, obvious deposits have advantages. Therefore, their value is very large, and everyone fights more fiercely.

Wang Jian said that in the past, if a bank were able to obtain good assets, then absorbing some of its peers' liabilities could also do business. But now, interbank business is not encouraged, so if you want to expand assets, your liabilities can only be supported by deposits. Moreover, since the banking industry is under greater pressure for profit this year and wants to protect interest rates as much as possible, it is also necessary to obtain debt as low as possible. Naturally, this is deposit.

What is the winning formula for pulling deposits?

In order to pull deposits, banks have resorted to "all solutions", but what is the real effective approach?

In response, He Dayong, head of the financial and insurance industry in Greater China, Boston Consulting Group, said that general deposits (so-called deposits) are mainly unit deposits and personal deposits. Unit deposits are mainly contributed by the corporate banking business, while individual deposits are generated by the retail business.

For the company's banking business, from the results of the study, the company's business is doing a good job, a very important success factor is cross-selling. The important component of cross-selling is deposits, especially settlement deposits. If the corporate banking business does not only focus on lending, but can provide corporate clients with services such as bills, letters of credit, and cash management, it can generate settlement deposits.

In addition, there are many objects that banks can dig for corporate customers' deposits. At present, the deposits of large-scale enterprises are relatively stable, but the bank's investment in small and medium-sized enterprises' deposits is insufficient. If such enterprises can optimize their payroll accounts and basic account accounts, they can bring in more deposits.

For retail banking, the method of attracting personal deposits in the future will mainly depend on optimizing the user experience, especially on the mobile user experience. This is the key factor for long-term personal savings. From a product perspective, the size of a bank’s ability to attract individual deposits is mainly driven by several core products, such as payment, public funds, long-term life insurance and other highly viscous products.

Wang Jian also said that the so-called deposit establishment, the essence is the customer, and access to customers, relying on products and services is all-round ability.

"So, a bank expert once put forward, do not say debt shortage (deposit shortage), there is no shortage of assets, and it has always been only capacity shortage." Wang Jian said.

No comments:

Post a Comment