According to the Beijing Banking and Insurance Regulatory Bureau, after preliminary investigation and regulatory investigation, there are four main problems: irregular product design, inaccurate risk measurement, mismatch between business volume and wind control capability, and irregular publicity and sales.
For example, in product design, some banks set a bottom-guaranteed return for structured deposits which is much higher than the interest rate of deposits of the same period, construct a narrow range of income fluctuations or set the right conditions of linked derivatives as an almost impossible trigger event, which makes structured deposits turn from nominal floating income products into facts. Fixed-income products on the bank violate the product design principle that enables depositors to obtain corresponding benefits on the basis of assuming certain risks; individual bank structural deposits are not actually embedded in financial derivatives or embedded in financial derivatives without real counterparties and trading behavior, and are suspected of disguising themselves by setting up a false structure Interest and storage.
The Beijing Banking and Insurance Regulatory Bureau said that in the circular issued this time, it reiterated the principle of product design that matched the earnings of depositors with the risks they took, and called on all parties to make good use of product design barriers and eliminate the problem of false structure. Strictly abide by the regulatory requirements, and accurately calculate various regulatory indicators related to financial derivatives business. Strengthen the management of market risk and operational risk in structural deposit business, and reasonably control the growth rate of total business. To publicize and sell structured deposit products in accordance with the relevant provisions of the Regulations on the Supervision and Administration of Financial Services of Commercial Banks, so as to effectively protect the legitimate rights and interests of consumers.
In view of the above four problems and chaos, the Beijing Banking and Insurance Regulatory Bureau has also put forward four regulatory opinions. Banks under their jurisdiction are required to collate and self-check their stock business, and submit the results of self-check, the rectification plan and the timetable before October 10, so as to ensure the orderly development of the banks new structured deposit business.
Firstly, we should do a good job in product design and eliminate the problem of false structure; secondly, we should improve business risk measurement and implement prudent regulatory requirements; thirdly, we should strengthen risk management of derivative transactions and control the growth rate of total business volume; fourthly, we should standardize publicity and sales activities and popularize rational investment concepts.
On the issue of product design, the Notice clearly states that all trades should strictly examine the design of structured deposit products, stop selling products with design irregularities or false structure problems in time, ensure that structured deposits are truly embedded in financial derivatives, and that some derivatives have real counterparties and trading behavior, and make it possible for them to do so. The depositors earnings match the risks he takes.
The Beijing Banking Insurance Regulatory Bureau said that all banks should conduct self-checking and rectification of their stock business and ensure that new structural deposit business is carried out in an orderly manner. The aim is to eliminate irrational competition among banking financial institutions in the field of structural deposit products, to transmit normative signals to the market of deposits under their jurisdiction, and to suppress the liabilities of small and medium-sized banks. Price, effectively implement the policy requirements to reduce the financing costs of the real economy, and promote the sound operation of banking financial institutions.
Source: First Financial Responsibility Editor: Guo Chenqi_NBJ9931