Who is the biggest competitor of the Internet Baby Corps?

The process of substantial advancement of market interest rates. The central bank said. Deposits cover a wider range of individual transfer certificates that are steadily advancing.

Recently, the media reported that large state-owned banks have received the central bank announced the "interim measures of deposit" of the draft, just in the secrecy phase, easy to disclose.

Immediately, the banking industry also agreed with the media reports, said the bank of China will be the first to be issued a large deposit of CDs, the period of 1 years, the interest rate of 4.2%, higher than the normal rate of 30%.

Sold at the end of June, the amount of 500,000 yuan deposit. At present, ICBC, CCB and other banks also submitted to the Central Bank for the establishment of large transferable interbank certificates of deposit applications.

In the 70 's, the Fed achieved interest rate liberalization in order to completely eliminate interest rate controls and lead over $100,000 trillion in CDs. 10 years later, the Fed gradually relaxed small, short-term deposit rates and finally more balanced the pace of reform in interest rate liberalization.

The approval of large-amount transferable certificates of deposit not only means that our interest rate marketization has taken a step further, but also declares that the ordinary citizens can add a better financial tool.

What is a large transferable deposit certificate? Large negotiable CDs, which are issued by banks for absorbing funds, have fixed denomination, fixed term, transferable large deposit vouchers.

At the moment, the starting amount of the interbank large negotiable deposit is 50 million yuan. The threshold for individual large transferable certificates of deposit is tentatively $500,000, and is expected to be considered in the future in the hope of providing the market with an updated financial approach. This threshold will be reduced.

So what are the advantages of a large transferable deposit certificate compared to a traditional term deposit?

One A certificate of deposit is a standardized product, it has a prescribed denomination, and the denomination is generally very large. The amount of the regular deposit is determined by the depositor and is not determined.

Second. Large deposit certificates have high liquidity, which can be transferred in the two market. Ordinary term deposits can only be withdrawn after maturity. Early withdrawal of interest income will be greatly influenced. Only large deposit certificates are transferable. But for the issuers of CDs, the banking industry says it is a steady deposit.

Third, the interest rate of CDs is higher. In the level two market transfer, the transferred interest rate will be determined by the supply and demand of the capital market at that time, so this is also considered as the transition in the process of interest rate marketization. It is also in response to the central bank governor Zhou Xiaochuan that the interest rate marketization reform will be over in the next two or three years.

Face, a large amount of personal negotiable certificates of deposit to attack.

Very many experts feel that even if the interest rate is 4.2%. 30% higher than the normal rate. But compared with some high-starting money of the financial products, the interest rate is still low, so the personal large transferable certificates of deposit on the bank and the Internet Baby Corps impact will not be very large. Only, I think, by the large amount of transferable deposit certificate business to carry out the impact. The challenges of future bank wealth and internet finance will not be underestimated. Individual large transferable certificates of deposit have an irreplaceable advantage.

First of all, whether it is the Bank of wealth products, or the Internet Baby Corps. The rate of return they promised to investors was the expected return. It is precisely because of the investment of the financial products project income and risk coexist. Therefore, the proceeds cannot be guaranteed. The CDs are based on bank credit. The rate of return is fully guaranteed. This will undoubtedly attract a large number of investors with financial strength, but also biased towards a steady increase.

Furthermore, CDs can be used as a deposit certificate for overseas deposits and as collateral for loans, and these functions are by no means the products of the financial management. Moreover, personal CDs can be transferred at any time in the two market, and most of the financial products have a duration. Some financial products if early redemption may face loss of principal, so from the liquidity perspective. The large deposit certificates are superior to all kinds of traditional wealth management products.

At last. Some experts feel that. Bank Wealth products and the Internet Baby Corps have a higher yield than individual large deposits. But the traditional reason for the higher interest rate of financial products. In the middle of last year and before and after the Spring festival in the interbank money market caused by the cash shortage, and this year the regulatory authorities to strengthen the precautionary and regulatory measures, money shortage phenomenon in the money market no longer appear, in the case of return to normal, the money fund returns is only between 4-5%. So traditional financial products and personal large deposits compared. The advantages are not too obvious, and have greater risks and uncertainties.

The rate of return on the Internet Baby Corps is deteriorating and competition is intensifying. After the birth one year. The rival of the Internet's financial products is moving, and the CDs are the products. The author thinks, for the investor, the security of the large deposit deposit is consistent with the general deposits, better than the money market fund. At the same time, the term structure is similar to term deposits and factoring because it is able to draw and trade, and its liquidity is better than regular deposits and factoring. It is estimated that in the process of promoting interest rate marketization. CDs are expected to help banks recover a lot of other lost land in the deposit area.

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Who is the biggest competitor of the Internet Baby Corps?