In recent years, against the backdrop of net interest spreads under pressure in the banking sector, major state-owned banks and stock banks have been pressing down on relatively expensive large deposit books. Long-term deposit products, especially 5-year large deposit certificates, once disappeared from bank “shelves”. Recently, however, some major state-owned banks and joint stock banks, such as Bank of China, China Construction Bank, and Ping An Bank, have re-“ listed” 5-year large deposit slips. An ICBC account manager said that currently the bank has 5-year large deposit slips and deposits on the shelves. Among them, the interest rate for large deposits is 1.6%, but “the amount has to be grabbed.” The account manager of the Shenzhen branch of the Agricultural Bank said that currently the bank does not have a 5-year large deposit certificate, but ordinary deposit products have a 5-year term product on sale, and the annual interest rate is 1.6%. Wang Pengbo, chief analyst at Broadcom Consulting, said that the primary purpose of some state-owned banks and stock banks resuming the sale of 3-year and 5-year large deposit certificates is to deal with the trend of shortening deposits. “Currently, residents tend to hold current and short-term deposits. The long-term term of bank debt continues to shorten, but there are still medium- to long-term financing needs on the credit side, and the risk of long-term mismatch between assets and liabilities continues to accumulate.” Wang Pengbo explained that institutions use long-term large deposit slips to absorb more stable core deposits and optimize the long-term debt structure. “The re-listing of this type of product should also be viewed as a bank's phased debt management method; it is not a shift in debt management strategy.”
Zhitongcaijing · 1d ago
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In recent years, against the backdrop of net interest spreads under pressure in the banking sector, major state-owned banks and stock banks have been pressing down on relatively expensive large deposit books. Long-term deposit products, especially 5-year large deposit certificates, once disappeared from bank “shelves”. Recently, however, some major state-owned banks and joint stock banks, such as Bank of China, China Construction Bank, and Ping An Bank, have re-“ listed” 5-year large deposit slips. An ICBC account manager said that currently the bank has 5-year large deposit slips and deposits on the shelves. Among them, the interest rate for large deposits is 1.6%, but “the amount has to be grabbed.” The account manager of the Shenzhen branch of the Agricultural Bank said that currently the bank does not have a 5-year large deposit certificate, but ordinary deposit products have a 5-year term product on sale, and the annual interest rate is 1.6%. Wang Pengbo, chief analyst at Broadcom Consulting, said that the primary purpose of some state-owned banks and stock banks resuming the sale of 3-year and 5-year large deposit certificates is to deal with the trend of shortening deposits. “Currently, residents tend to hold current and short-term deposits. The long-term term of bank debt continues to shorten, but there are still medium- to long-term financing needs on the credit side, and the risk of long-term mismatch between assets and liabilities continues to accumulate.” Wang Pengbo explained that institutions use long-term large deposit slips to absorb more stable core deposits and optimize the long-term debt structure. “The re-listing of this type of product should also be viewed as a bank's phased debt management method; it is not a shift in debt management strategy.”
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