Dynamic tracking of banking institutions, semi-monthly reports
Attention in this issue: According to media reports, banks have recently carried out a number of measures to reduce the deposit cost rate, including the rectification of "manual interest supplement", the suspension of the sale of medium and long-term large-value certificates of deposit, the removal of smart notice deposits, and the reduction of the listed interest rate of deposits by some small and medium-sized banks. This round of intensive adjustment of high-cost deposit products by banks has been driven by both regulatory guidance and pressure on their own operations.
From the perspective of historical experience, the regulatory authorities have guided the self-discipline mechanism of interest rate pricing to focus on promoting banks to rectify high-cost deposit products and strengthen the management of the deposit market from 2019 to 2020, and the overall deposit cost ratio of banks has been significantly reduced. At that time, the high-cost deposit products rectified by financial institutions included demand deposit interest-bearing products, time deposit early withdrawal interest-bearing products, structured deposits, non-local deposits and other products. With the gradual decline in the scale of related products and the reduction of interest rates, the deposit cost ratio of major national banks has stabilized after a downward trend of about a year from the high point in June 2020, and has fallen by about 9BP in a year. From June 2020 to June 2021, the deposit cost ratio of joint-stock banks decreased significantly higher than that of large state-owned banks.
Based on historical experience and our calculations, the recent measures taken by banks to rectify and remove high-cost deposit products will play a certain role in reducing the cost of bank deposits in the future. Specifically, the "manual interest supplement" has driven the deposit cost rate of listed banks down by 4.6-12.5BP, and the cost of debt by 4.6-9.2BP; it is estimated that after the suspension of the sale of medium and long-term large-value certificates of deposit, the cost rate of 9.18 trillion deposits will drop by 57BP, which in turn will drive the overall deposit cost rate of banks down by 1.8BP; it is difficult to estimate due to the lack of corresponding data on the removal of smart notice deposits. If further coupled with the recent reduction of deposit interest rates by some small and medium-sized banks, it is expected that the bank deposit cost ratio will decline significantly in 2024.
Adjustment of banking institutional strategy and organizational structure: 1. Zhang Weizhong, Chairman of Shanghai Pudong Development Bank: "Digital Intelligence" strategy leads, and runs well and outperforms the marathon of bank operation; 2. Another provincial-level rural commercial bank was approved to open, and the registered capital of Hainan Rural Commercial Bank set a new record; 3. Bank of Jiangsu: Promote the high-quality development of pension services and add luster to the article of pension finance.
Changes in the products and business layout of banking institutions: 1. A number of banks have implemented multi-functional free trade account business; 2. ICBC and Bank of China issued the first batch of TLAC bonds; 3. ICBC Financial Leasing successfully landed the industry's first offshore RMB overseas aircraft financial leasing business; 4. CCB was selected by the Ministry of Agriculture and Rural Affairs to release innovative models and typical cases of financial support for agriculture; 5. CCB's over-the-counter bond business was comprehensively upgraded to help the construction of a multi-level bond market; 6. China Securities Construction Bank Science and Technology Innovation Leading (Yangtze River Delta) Index was officially released; 7. Postal Savings Bank's "Finance + Technology" helps to serve the wage supervision of migrant workers; 8. The Hong Kong branch of the Bank of Communications helps Hong Kong write a good article on green finance; 9. Bank of Communications successfully landed the first cross-border transfer of asset-backed securities in the market; 10. Lu Jianqiang, Chairman of Zheshang Bank, shared Zheshang Bank's experience in helping biomedical enterprises innovate and develop; 11. Alipay and Bank of Hangzhou officially launched the "Safe Pay" product; 12. The Alipay Huabei quota can be paid on WeChat, Jingdong and Douyin platforms, and it needs to be bound to a Nanjing bank account; 13. Bank of Chongqing was the first to launch the "famous, special and new" individual credit loan and successfully landed the first batch of business.
Digital innovation of banking institutions: 1. ICBC builds the "Rong'an e-core" intelligent risk control model to build a strong anti-fraud firewall; 2. Agricultural Bank of China's corporate palm bank upgrade version 5.0 was launched; 3. The first bank electronic certificate of Guangzhou Rural Commercial Bank was successfully implemented.
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