#5月财经新势力#
Today we're going to talk about it
Stories about "big" and "small".
In general,
People always like the big one.
But it is said that
Recently, many large banks have been "out of stock" of large-value certificates of deposit
The so-called large certificates of deposit,
It refers to a large-amount deposit certificate issued by a bank to investors.
Certificates of Deposit (CDs) are general deposits.
But it's a little peculiar.
Compared to regular deposits,
The investment threshold for large-denomination certificates of deposit will be higher.
It can be seen that the minimum requirements for the subscription amount of large-denomination certificates of deposit are different for individuals or institutions, but they are all relatively large.
Not less than 200,000 for individuals, and not less than 10 million for institutional investors.
This is mainly due to the fact that different investment groups have different investment capabilities
The interest rate on large certificates of deposit is determined in a market-based manner
Investors in large-denomination certificates of deposit can only be individuals, or non-financial institutions, such as non-financial enterprises, government agencies, and organizations.
It can be seen that financial institutions are generally not allowed to subscribe for large-denomination certificates of deposit.
However, there are exceptions, such as the social security fund can invest in large certificates of deposit.
When we go to the bank to make a deposit, there will always be a requirement for the term of the deposit, either a current term or a fixed term of 3 years or 5 years
The maturity of large-denomination certificates of deposit is standardized.
There are 9 varieties from 1 month to 5 years.
Naturally, the deposit has to pay interest, how to pay the interest?
There are generally two types of interest payment methods for large-denomination certificates of deposit:
Normally,
If the depositor is in a hurry to use the money and needs to withdraw the fixed deposit,
At this time, it can only be calculated according to the current interest.
Is this also true for large certificates of deposit?
In fact, when we buy large-denomination certificates of deposit,
Some products will be marked with "Transferable".
What does this mean?
That is, when you need the money urgently, you can "resell" such certificates of deposit to other people.
If the investor successfully transfers a large amount of certificates of deposit, it can not only meet the temporary needs of capital use, but also obtain higher returns than current accounts
The basic process of transfer is generally as follows:
The transferable function of large-value certificates of deposit improves liquidity, solves customers' urgent needs, and enhances the attractiveness of products.
But it should be noted that
Not all CDs have a transfer function.
In short, as a deposit product, a large-denomination certificate of deposit,
It is safe and stable and has better returns, so it is sought after by many investors
Oh no,
It's just that some banks no longer issue new certificates of deposit for medium and long-term denominations.
We know that banks take deposits from residents and businesses on the one hand, and lend the absorbed funds to businesses and individuals in need.
The interest rate differential between the two is the main source of income for banks.
If the bank takes deposits but can't lend them,
Then the profit margin will be compressed
The pressure on lending is relatively high, so banks naturally have to make some adjustments to deposit products.
For example, banks will lower interest rates on deposits
Another example,
Some banks choose to directly reduce the issuance of medium- and long-term certificates of deposit to reduce high-cost liabilities
With the decline of market interest rates, the interest rate on large certificates of deposit, which was relatively high in the past, is also falling.
As a result, the advantages of large-denomination certificates of deposit over ordinary deposits are no longer great and unattractive, and some banks are more motivated to suspend the issuance of new large-denomination certificates of deposit.
Of course, everything is not absolute,
In some regions, small and medium-sized banks are under pressure to collect deposits.
Instead, it will increase customer acquisition by moderately increasing the number of large-value certificate of deposit products
Anyway,
Many banks have removed large-amount certificates of deposit mainly to reduce long-term debts, reduce the proportion of high-interest deposits, and ease financial pressure.
Finally, we conclude that large-denomination certificates of deposit are bank deposit financial products, which are large-denomination certificates of deposit issued by banking depository financial institutions to non-financial institution investors.
Well, that's all for today.