Who will be the biggest enemy of the Internet Baby corps?

With the significant progress in interest rate marketization, the central bank said that large numbers of convertible deposit certificates for individuals with a wider scope are also progressing steadily. Recently, some media reported that a large state-owned bank has received a draft of the Interim Measures for the Management of large-value deposit certificates issued by the Central Bank. However, it is still in the confidentiality stage and it is not convenient to disclose it to the outside world.

Then, industry insiders also accepted the media report, saying that the Bank of China may be the first bank to receive regular deposit orders for wholesale sales of large amounts. The period is one year and the interest rate is 4.2%, Which is 30% higher than the normal rate. The product was launched at the end of June, with an initial deposit of 0.5 million yuan. At present, ICBC, China Construction Bank, and other banks have also submitted applications to the Central Bank for creating large-value convertible interbank regular deposit orders.

In the 1970s S, the Fed took the lead in realizing interest rate marketization on large deposit orders worth more than $0.1 million in order to completely cancel interest rate control. Ten years later, the Fed gradually relaxed its small-and short-term deposit rates and eventually completed the pace of interest rate marketization reform in a more balanced manner. The approval of large-value transfer-of-stock orders of individuals not only means that China's interest rate marketization has taken another step, but also announced that ordinary citizens can add another better financial management tool.

What is a large convertible deposit form? Large-Value convertible fixed deposit certificates are issued by banks to absorb funds. They have fixed denominations, fixed periods, and negotiable large-value deposit certificates. Currently, the initial amount of large-value transfer-of-stock certificates between banks is 50 million yuan, while the threshold for large-value transfer-of-stock orders for individuals is tentatively set to 0.5 million yuan. It is estimated that in the future, the bank will provide an updated financial management channel for the market, this threshold will be lowered. So what are the advantages of large-value transfer-able deposits compared with traditional fixed-period deposits?

First, large-value inventory is a standardized product with a specified denomination, which is generally large. The deposit amount is determined by the depositor, and the amount is not determined.

Second, a large deposit order has a high liquidity, which can be transferred in the secondary market, while a general fixed-period deposit can only be withdrawn after expiration, and the interest income obtained in advance will be greatly affected. However, although large-value deposits can be transferred, they are a stable deposit for the issuer's banking industry.

Third, the interest rate of large-value deposit orders is relatively high. In the second-level market transfer, the transfer interest rate will be determined by the supply and demand relationship of the current capital market, therefore, this is also seen as a transition in the interest rate marketization process. According to Zhou Xiaochuan, Governor of the Central Bank, the interest rate marketization reform will be completed in year 23.

In the face of large-value transfer-able storage orders of individuals. Many experts believe that even if the interest rate is 4.2% higher than the normal interest rate of 30%, the interest rate is still low compared with some financial products with a high starting value, therefore, the impact on banking products and the Internet Baby Corps will not be great for individuals who can transfer large amounts of deposit certificates. However, I believe that, due to the impact of large-value transfer-of-stock service, the challenges of banking and internet finance will not be underestimated in the future. An individual's large-value transfer-of-stock orders have irreplaceable advantages.

First, whether it's banking products or the Internet Baby corps, they promise that the return rate to investors is the expected benefit, because the project income and risk of financial product investment coexist, therefore, the benefits cannot be guaranteed. Large-Value deposit is based on bank credit, and the return rate is completely guaranteed. This will undoubtedly attract a large number of investors who have financial strength and tend to be stable.

In addition, large deposit certificates can be used as deposit certificates for overseas deposits, and can also be used as loan collateral. These functions cannot be used by financial products. Moreover, individual large deposit orders can be transferred at any time in the secondary market, while most financial products have a period of validity. If some financial products are redeemed early, they may face the loss of the principal, so from the perspective of liquidity, large-Value deposit orders are superior to various traditional financial products.

Finally, some experts believe that the yield of banking products and the Internet Baby corps is higher than that of individual large deposits. However, the high interest rate of traditional financial products is caused by a shortage of money in the currency market between banks between the Spring Festival and the Spring Festival last year. This year, the regulatory authorities have strengthened preventive and regulatory measures, the shortage of money in the currency market does not occur any more. When we return to normal conditions, the yield of monetary funds is only between 4-5%. Therefore, compared with individual large deposits, traditional financial products, the advantage is not obvious, and it has great risks and uncertainty.

At present, the Internet Baby corps is declining, and competition is becoming increasingly fierce. One year after its birth, the rival of Internet Financial Products was born, and large deposit orders were just such products. The author believes that for investors, the security of large deposit certificates is the same as that of General deposits, which is better than that of financial management and money market funds. Meanwhile, the term structure is similar to fixed deposits and financial management, because it can be withdrawn and traded, it is more fluid than regular deposits and financial management. It is expected that in the course of interest rate marketization, large deposit orders are expected to help banks recover more lost ground in the deposit field.

 

 

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