Private banking business model positioning difficult

Under the attention of various industrial tycoons and chief financial institutions, the long-awaited private-sector banks have finally emerged. China Banking Regulatory Commission has formally approved the preparation of the three private banks to build applications, they are Tencent, a hundred industry sources, Founding sponsor of Shenzhen Qianhai Bank; Zhengtai, Huafeng sponsor Wenzhou Commercial Bank; North China, wheat The main sponsor of Tianjin Jincheng Bank. So far, this noisy more than a year of trial of the number of private banks finally have a more conclusive conclusion of the dispute. However, in the context of the marketization of interest rates, the homogeneity of commercial banking business and the rising worries of bad debts, is it a blessing for the "tycoons" to enter the financial circle? How can private recruits compete with traditional banks? Whether they can staged a tyrant counterattack?

Business model positioning difficult

"Surgery has specialized." After the establishment of private banks, their main business projects have attracted much market attention. At the CBRC's work conference on banking supervision in the first half of 2014, CBF Chairman Shang Fulin introduced that the three pilot banks each have their own unique characteristics in terms of development strategy and market positioning. The objective is to provide efficient and differentiated financial services for the development of the real economy, For example, Shenzhen Qianhai Weizhong Bank will be established as a bank that will focus on serving individual consumers and small and micro enterprises. Wenzhou Commercial Bank will be located in small and micro enterprises, individual industrial and commercial households and community residents in Wenzhou area, Agricultural "to provide inclusive financial services, Tianjin Jincheng Bank will focus on the development of Tianjin's business.

As early as March this year, the CBRC announced five private banks in the pilot program, initially set four business models, including Tencent and Hundreds of sources of large deposit mode, the commercial exchange of Tianjin and North China public loan Mode, the local regional model of Wenzhou Chint and Huafeng. The deposit-only model refers to setting a minimum deposit limit, accepting only large deposits, setting a loan ceiling in addition to supporting loans for small and micro enterprises, and depositing public loans in the public sector solely for corporate services and not for retail business. The local regional model It refers to serving a specific local consumer.

It is understood that all three pilot banks' preparation plans are formulated under the current laws and regulations such as the Commercial Bank Law. They should also meet the unified requirements of regulatory laws and regulations and compete fairly with the existing banking financial institutions. At the same time, sponsors of private banks voluntarily assumed more responsibilities outside their investment to support the better development of pilot banks. The pilot banks all adhered to the principle of launching purely private capital, determined the arrangements at their own risk, and shareholders promised to voluntarily accept extended supervision. They will also formulate bank recovery and disposal plans before opening.

Guo Tian Yong, director of the China Banking Research Center at the Central University of Finance and Economics, believes that with the launch of Internet companies by private bank promoters, it is bound to bring new ideas and new approaches to Internet finance.

Some market participants believe that with the participation of Tencent private banks may become "WeChat banking." Tencent said that the specific model still need to officially open when released, but it is certain that more ways to use the Internet. According to public information, Shenzhen Qianhai Weizhong Bank will be "inclusive finance" as the concept, the main face of individual or business micro-loan needs. The future will use the Internet platform to conduct business, relying on the platform, in cooperation with other financial institutions to carry out business. The bank's risk control introduced a state-level bank risk control system, on the basis of which Tencent would import the technical capabilities of the Internet and use technologies such as big data to conduct business risk control.

However, many people worry about the future development prospects of private banks and the need to introduce supporting systems. Zhu Haibin, chief economist of JPMorgan Chase, believes that it is necessary to provide support to the development of financial markets and financial institutions, including the establishment and approval of private banks, the introduction of a deposit insurance system, the establishment of a bankruptcy system for financial institutions and the further relaxation of non-bank financing.

Beijing Commercial Daily reporter found that many microblogging have set up a Q & A session, put forward "If you save money in private banks, you dare to save it?" Many netizens can not save, there are many users that wait and see.

The first side of the market impact of interest rates

As the saying goes, "many-year-old daughter boiled into a woman." Emotional financial license after the approval of the establishment of enterprises, the excitement can be imagined. However, in fact, the traditional banks have not been able to enjoy a better life in these two years. The most important issue facing the private banks after they started their operations is the impact of market-oriented interest rate reform.

Ma Weihua, who served as president of China Merchants Bank for 14 years, once said that after retiring, many private banks found him and asked him to go to become the president, but they were all declined. In his view, it is time for the marketization of interest rates in China to accelerate. International experience shows that in this process, the impact on small and medium-sized commercial banks is the greatest and can even be regarded as a test of life and death.

Ma Weihua that the newly opened bank, the first network can not be all of a sudden shop, but more importantly, credit has not been fully established, we are waiting and see. With the interest rate gradually marketized, private banks can only obtain deposits if they pay higher costs. If you take the traditional deposit-loan spread model, private banks have almost no way of life.

Lian Ping, chief economist of the Bank of Communications, also holds the same view. After 2012, the market-oriented interest rate liberalization accelerated and the bank spreads were reduced. The new private banks should make loans and the deposits needed to reach a certain level. Existing banks already have a good foundation, outlets, customers, including the skilled use of various means. And even in this case, it is very difficult to make a deposit business, then the nascent private banks to do the deposit business is obviously more difficult. "If you dramatically raise deposit rates, you could quickly squeeze interest rates and create operational risks."

For private banks how to get rid of liabilities, Ma Weihua pointed out that "Unless private banks can be well integrated with the Internet, using the Internet to extend the original less physical outlets, or Internet companies to do directly to the bank through the Internet financial constantly Innovation and development of business, so that it is possible to resolve the traditional financial sector in the face of interest rates brought about by the impact of the market. "

Business security risks

The three private banks have been approved for construction and have set off a hot debate on the Internet. The issues that the market is most concerned about private banks include: how to guarantee depositors' deposit security and how to avoid business risks.

Due to the slowdown of economic growth, the operating conditions of steel trade, photovoltaic and other industries are not good. Since last year, the risk of bad debts of commercial banks, especially small and medium-sized banks, has been constantly highlighted. Data show that in 2013, bank non-performing loans write-off more than doubled in 2012, setting the highest level in a decade. And new private banks are facing the same dilemma?

In fact, at present, the competition in domestic banks is very fierce. The clients of high-quality enterprises have basically been firmly mastered by the big banks, and the rest are often those with low credit rating. Such enterprises in the large state-owned banks to panic turn to private banks, will undoubtedly increase the risk of bad debts. Private banks, on the other hand, are in a disadvantageous position and do not have the strength to compete with the big banks for interest rate competition. This will put them at a serious risk.

It seems the industry, state-owned banks have the national reputation as a guarantee, people are convinced of its strength. However, in the absence of a deposit insurance system, private banks may have serious liquidity problems and even run-in in the event of any sign of trouble. Guo Tian Yong predicts that when these three private banks are opened, the deposit insurance system will be launched. Only in this way can we ensure the safety of ordinary residents' funds and attract ordinary people or enterprises to make deposits with private banks.

Yang Liping, director of the CBRC supervision department 2, pointed out that the sponsors of the three private banks voluntarily assumed a lot of responsibilities outside the capital contribution and set the relevant arrangements at their own risk. For example, the sponsor voluntarily promised that if the bank is under bankruptcy liquidation and the funds are not enough to repay, the deposits of depositors will be fully or partially repaid with the net assets of the enterprise or the actual controller's net assets even though the deposit insurance system has not been established yet. Through this arrangement to enhance public confidence and maximize the protection of consumers.

It should be added that as of the end of June, the non-performing loan ratio of commercial banks was 1.08%, up 0.08% from the beginning of the year. The non-performing loan balance increased by RMB24.2 billion over the beginning of the year.

Internet coveted bank license

Tencent grab the first step to get involved earlier in the tide of private banks Alibaba slightly embarrassed. However, according to the words of China Banking Regulatory Commission, Alibaba and many third-party analysts, the worry of "Ali's election" is superfluous. This is not the application of Ali small micro gold clothes are not approved, but the Ali small micro gold clothes have not yet submitted to the China Banking Regulatory Commission to prepare the relevant programs and materials.

Yu Shengfa, vice president of Ali Micro-Financial Services Group, expressed his "warm congratulation" to the three private banks that were approved to start the preparatory work. However, he emphasized that "being one of the first five private banks under the CBRC", "is actively preparing for each Probability and direction of the full demonstration, follow-up to further progress will be disclosed to the public at any time. "

Analysys think tank analyst Ma Tao also believes that Tencent snag run in the short term impact is relatively limited, Ali in the area of ​​small loans, payments and big data through the long-term accumulation of established advantages in the short term is also more obvious, although the first batch Approved, but as one of the first batch of pilot, I believe the possibility of approval later.

It is noteworthy that, at the beginning of the pilot disclosure, it was pointed out that Ali focused on "small deposits of small loans" (set the deposit ceiling and loan ceiling), Tencent focus on "big deposit" (set deposit limits and loan caps), this Times approved three Tencent Qianhai Bank micro-Bank model has become "a deposit."

The prevailing judgment of the current exposure is that both Ali Bank and Tencent Qianhai Weizhong Bank focus on "small" businesses: ordinary people's deposits and SME loans.

But no matter what model, so far there is no official interpretation from the enterprises and the CBRC, let alone the details of the account opening policy. Tencent's response said it still takes about six months to build prepaid, to obtain a business license to formally operate, the specific model needs to be confirmed when opening.

Ma Tao believes that a lot of Internet banking businesses that obtain bank licenses, Tencent and Ali will be incorporated into the banking system. Internet companies will reduce their chances of playing the ball when innovating their financial business products and their business development will be more standardized. Whether acquiring deposits through the Internet, launching new wealth management products, bank loans for small and micro enterprises, and individual-oriented credit payments will be more handy and greatly expand their business scope and profitability.

Prior to this, in the network financial management, virtual credit card, code scanning and many other aspects of Internet finance innovation, Tencent, Ali and other industry giants are also subject to policy restrictions.

This positive drive more and more Internet companies covet private banking license, Baidu CEO Robin Li also said earlier, Baidu will participate in the form of equity participation in the initiation of private banks, the company's big data technology and data accumulation on the future operation of the bank will play Positive effect. Suning cloud business announced in August last year, said the bank is actively carrying out the declaration of the relevant banking work, as a sponsor of the establishment of bank preparatory work, and even won the "Suning Bank," the name of the business sector approval.

"Internet companies to participate in private banks, not simply to make money by banking, more focused on the integration of financial business and the inherent business, such as business on Taobao need sales channels, but also the need for loan channels." Analysts pointed out that even a lot of physical big brother Not optimistic about private banks, Internet companies are still flocking to this.

Wang Jianlin, Chairman of Wanda Group, and Zong Qinghou, chairman of Wahaha Group, have said in a number of public occasions that private banks have high costs, high risks and unpredictable earnings and have no plans for entry. Even Shih Zhuzhu, chairman of the Giant Network, who has benefited immensely from Minsheng Bank, also believes that the private banking business now launched has a narrow, 3-5-year loss experience.

Beijing Commercial Daily correspondent Meng Yan Yan Yan Zhang Zhang Wang / text