Source: Zhongxin longitude and latitude
On the 14th, Bank of China App issued the announcement on personal Intelligent Notification Deposit and notice Deposit, automatic / contract transfer to stop follow-up Service (hereinafter referred to as the announcement). According to the announcement, according to the relevant policy changes, the bank will stop the original personal intelligent notification deposit products and the follow-up services of automatic and agreed rollover of original notice deposits on May 15.
Zhongxin Jingwei combed found that since April, more than 20 banks have announced the termination of smart notice deposit business. In the view of people in the industry, the removal of "smart notice deposits" is in line with the policy orientation of lowering deposit interest rates, which is conducive to continuously reducing the cost of bank liabilities and making banks more sustainable in giving benefits to the real economy.
Dense termination
According to the announcement of the Bank of China, after the customer voluntarily cancels the contract or the bank ceases service, the use of the account will be the same as before, and the functions of deposit, withdrawal and transfer will not be affected, but the funds in the account will be charged at the interest rate of the demand deposit listing rate.
The announcement points out that after the rotation / contract transfer notice deposit is settled, the customer can choose to redeposit the deposit product at the preferential interest rate on sale. If you need to use the funds, you need to establish a notice in advance and withdraw it on the agreed date. If you do not set up a notice in advance or do not withdraw in accordance with the agreement, interest will be calculated at the current deposit listing rate.
"this is a termination decision based on regulatory requirements, policy changes and bank deposit self-regulatory mechanism management requirements." Bank of China online customer service staff said.
Among the large banks, the Postal savings Bank and the Bank of Communications have also recently issued announcements on notice deposits. The Bank of Communications announced that it will terminate the Shuangli deposit (ordinary version / super-enjoy version) business on May 15, 2024. As of the date of implementation of the announcement, the double interest deposit business agreement signed between the customer and the Bank of Communications shall be terminated automatically. After the termination of the agreement, the Bank of Communications will no longer provide customers with services such as opening double-interest deposit sub-accounts and depositing funds.
According to the online customer service of Bank of Communications, Shuangli deposit (super-enjoy version) business means that an individual customer signs a contract with BoCom under the Pacific debit card, and the BoCom system automatically opens a notification deposit sub-account according to the agreement determined by the customer at the time of signing the contract. Transfer the funds of the card current settlement account into the notice deposit, transfer the deposit back at the expiration of the deposit period, or linkage expenditure in accordance with the agreement. The business in which the funds in the current settlement account and the notice deposit sub-account under the card are calculated according to the demand deposit and the notice deposit respectively.
According to the notice of the Postal savings Bank, starting from May 15, 2024, the individual notice deposit (including Dream plus Postal Station) products that can be automatically transferred will no longer be automatically transferred, and the expiration date of the notification deposit product will be the expiration date of the last rollover cycle, and the account will not be automatically closed after maturity.
National joint-stock banks are also on the move. On May 11, Huaxia Bank issued a notice that the bank's personal stable smart account (including personal stable one-day account and personal stable seven-day account) automatically terminated on May 13, 2024. After termination, the funds of the personal stable smart account will be transferred to the current account signed in the card.
At the same time, Huaxia Bank also said that it has been suspended since May 15, 2023.Rocketplaycasinonodepositbonuscodes2022The one-day revolving profit and seven-day recurring profit product signing function was carried out, and the one-day recurring profit and seven-day recurring stock business service was terminated on May 14, 2024. After the termination of the business, the one-day and seven-day revolving interest accounts will be closed, and the funds in the accounts will be transferred to the customer's contract settlement account.
Societe Generale issued two automatic termination notices on May 10 and 13, respectively for intelligent notice deposits of individuals and enterprises. The announcement shows that in order to implement the relevant policy requirements, the bank's personal smart notification deposit product / corporate financial customer smart notification deposit product will automatically terminate on May 15, 2024. For customers who have handled the personal intelligent notice deposit business, the bank will settle the interest and terminate the contract automatically on the near settlement date, at which time the principal and interest of the products will be automatically transferred to the customer's current account.
Everbright Bank announced that the accounts of automatic roll-over notice deposits such as public week plan, public smart deposit A (3-stroke 7-day deposit) and public smart deposit B (7-day deposit) will stop automatically rolling over notice deposits from May 15, 2024, and the funds of rolled-over notice deposits will be transferred back to the signing current account after maturity, and then the system will automatically terminate the contract. If there is any outstanding interest, it will be settled according to the bank's current listing rate.
In addition to the above-mentioned banks, Citic Bank, Minsheng Bank, Ping an Bank, Guangfa Bank, Bohai Bank and other national joint-stock banks have recently issued relevant notices on stopping the intelligent notification deposit stock business (including personal and public).
Why stop?
It is understood that the notice deposit is a kind of deposit business in which the deposit period is not agreed upon and the withdrawal date and amount are agreed upon by notifying the bank in advance when withdrawing. On the other hand, the intelligent notification deposit omits the links of "customer advance notice" and "timely withdrawal after customer notice", and is automatically calculated according to the highest return.
According to a number of media reports, in May 2023, regulators issued a notice on the self-regulatory limits on agreed deposits and notice deposits. Among them, the big state-owned banks implement the benchmark interest rate plus 10 basis points.Rocketplaycasinonodepositbonuscodes2022His financial institution implements the benchmark interest rate plus 20 basis points. At the same time, supervision requires banks to stop operating notice deposits that do not require customer operation and are intelligently rolled over automatically.
In May last year, Ping an Bank and other banks announced a moratorium on the sale of "smart notice deposit" products, and state-owned major banks such as Industrial and Commercial Bank of China, Construction Bank and Agricultural Bank of China removed the "smart notice deposit" function from App.
On May 9, Qingdao Jimo Huimin Village Bank issued a notice on automatic rollover to generate profit and notice deposit changes, according to which, "in order to implement the measures taken by the people's Bank of China to deepen the reform of the interest rate market, the policy of one-year transition period for stock notice deposits and interest-generating deposits in accordance with the original interest rate will automatically terminate on May 15, 2024."
Thus it can be seen that the relevant policy has set an one-year transition period, and now that the transition period is over, stock smart notification deposits are also removed from the shelves.
To narrow or reduce pressure on spreads.
In addition to smart notice deposits, a number of banks have recently stopped selling medium-and long-term certificates of deposit. In addition, the means of collecting deposits with high interest rates, such as "manual interest compensation", have also been required by supervision and reform.
According to Dong Ximiao, chief researcher of China Merchants Association, some banks adjust their issuance plans for products such as large certificates of deposit, time deposits, and agreed deposits (including reducing the size of issuance, suspending some products, etc.), as well as removing smart notice deposit products. the main purpose is to lower deposit interest rates and lower debt costs.
According to the data, the net interest margin of commercial banks fell to 1 in 2023.Rocketplaycasinonodepositbonuscodes2022.69%, the lowest since 2017. According to a research report by Huatai Securities, the net interest margin of listed banks in the first quarter of 2024 is down from 22bp to 1.Rocketplaycasinonodepositbonuscodes2022.51%, driving net interest income-3.0% compared with the same period last year, is an important factor dragging down revenue, among which the interest income of joint-stock banks and agricultural and commercial banks has dropped relatively greatly.
Zheshang Securities Research report believes that the decline in interest spreads of listed banks in the first quarter of 2024 is better than expected, and the cost of debt has improved for the first time, hedging the downward pressure on asset-end returns. The data showed that the debt-side cost ratio fell 4bp to 2.07% month-on-month, the first improvement since the fourth quarter of 2022, mainly due to the release of interest rate reduction dividends on deposits.
Huatai Securities Research report pointed out that with the retail debt cost optimization and effective, the first quarter net interest margin decline has narrowed, month-on-month decline in 2bp, followed by further regulation of manual interest rate, interest margin year-on-year decline pressure is expected to slow.
Dong Ximiao believes that at present, deposit and loan interest rates have entered a downward channel, and the downward pressure on the net interest margin of commercial banks appears, but many banks are still keen to compete for more market share and customer resources, and various forms of high interest deposits emerge one after another. Banks should abandon the scale complex and speed complex, do not pursue simple scale growth and market share, not only maintain the stable growth of deposit business, but also control the debt cost within a reasonable range.
(for more reporting clues, please contact Wei Wei, author of this article: vivi1257@163.com)
Text: Wei Wei, Editor: Li Xiaoxuan, Editor: Luo Kun, Li Zhongyuan
