Notes on the transformation of bank financial management: principal guaranteed products have been removed from the market and new products are still squeezed

 Notes on the transformation of bank financial management: principal guaranteed products have been removed from the market and new products are still squeezed

A lot of things come out of the shadows. In the future, the transformation will be carried out steadily. There may be some tails left after the end of the transition period, but banks will also communicate with regulators. A general manager of the asset management department of a large-scale stock bank told reporters.

There is little pressure on the transformation of principal guaranteed financial management

After the new regulation of asset management, the direct task of bank financing is to digest the huge scale of stock assets, and issue new products to make the transition between new and old products. In the stock assets of financial management, guaranteed financial management undoubtedly accounts for most of the proportion. In the context of breaking the rigid confirmation, reducing the scale of guaranteed financial management has become the top priority.

The progress of breakeven financing is quite smooth, said the general manager of asset management of the stock bank to the reporter. In the past, the concept of breakeven financing actually includes two parts, one is structural deposit, the other is true breakeven financing. Now structural deposits have been classified into on balance sheet management, and supervision is also strengthening monitoring. In addition, as for the real breakeven financing, the proportion of its own scale is relatively low, and there are structural deposits to undertake, so this is not difficult to deal with.

At present, it can be seen that the banks guaranteed financial products are exiting in an orderly manner. In November, two banks announced that they would take off the two previously issued guaranteed products: on November 1, Everbright Bank announced that it would stop the current treasure financial services from November 30; on November 8, Bank of communications announced that it would stop processing Wards salary portfolio products from November 20.

On the one hand is the pressure drop of Principal Guaranteed financing, on the other hand is the promotion of the transformation of net worth. Since 2019, banking financial institutions have significantly increased the issuance of net worth products, strengthened investor education, and promoted the transformation of product specifications. The influence of net worth products in the market has been increasing.

According to China Banking financial market report, in the first half of 2019, the banks net worth products raised a total of 21.82 trillion yuan, an increase of 86.39% year-on-year; the net worth products raised 45.39% of all non guaranteed products raised funds, accounting for 17.77% higher than the same period of last year.

The remaining balance of net value non breakeven financial products is 7.89 trillion yuan, with a year-on-year increase of 118.33%; net value products account for 35.56% of the remaining balance of all non breakeven financial products.

From the data point of view, the achievements of the banks net worth transformation are gratifying. The structural adjustment is also relatively obvious. The scale of inter-bank financing has declined significantly, reflecting that the banks asset management has returned to the source of agent financing, and the phenomenon of capital idling among inter-bank banks has decreased significantly, which can better play the role of serving the real economy, a person in the industry told reporters

Data shows that as of the end of the first half of this year, the remaining balance of interbank financing was only 0.99 trillion yuan, falling to within 1 trillion yuan for the first time, down 43.69% year on year.

On the asset side, transfer the old wealth management products and billions of assets to the compliant net worth products, and the disposal methods of non-standard assets are also concerned. A vice president of the capital management department of the city commercial bank said to first finance and economics, there is not too much pressure on non-standard processing, because there is not strong non-standard demand in the whole market now. But some long-term, with a certain share nature, such as the Ming stock real debt industry fund will be more difficult to deal with.

The vice president of asset management also said that the key lies in the proper price. If the price is not appropriate and there are problems in the quality of underlying assets, it is difficult to deal with them. However, this part of products are basically owned by big banks and few by small banks, so they will be digested gradually according to the principle of one line, one policy , and this does not affect the continued issuance of products by financial subsidiaries of big banks.

However, since October this year, the regulatory authorities have repeatedly issued documents to rectify the problem of fake structured deposits, which makes the substitution of structured deposits for Principal Guaranteed financing discount, so the funds received from the principal guaranteed financing port will also be limited, and the bank also needs to solve the problem of the capital direction of some conservative investors. To this end, the said general manager of asset management of the joint stock bank told reporters, this impact is not great. Now many banks have made a real structure, their earnings are guaranteed to a certain extent, and investors have judgments on risks.

Competition between new and old products

Although the existence and issuing scale of net worth products have increased significantly, but in terms of proportion, the proportion is not more than half. Now, only 13 months are left before the deadline for the transition period of new asset management regulations. There is still a great pressure for banks to digest all non-conforming products in stock during this period.

For example, during the transition period, new and old products are squeezed. On the one hand, the old products need to be renewed, otherwise there will be problems in the liquidity of the capital pool. For investors, the old products can be just converted, and the yield is not low, so the buyers of new products will naturally be less. With the end of the transition period in 2020, there will be fewer and fewer old products, and this kind of contradiction will be smaller, the industry veteran said to the first financial reporter

In addition, the structure of bank financial products is quite similar, because cash management products have strong liquidity, high security, and not low yield, resulting in excessive dependence on such products in the process of net worth transformation.

This kind of dependence can be understood in the early stage of transformation, because it is necessary to maintain customer stickiness, but it is obviously not advisable to rely on a class of products, and at present, the real economy has a longer period of demand for financing, while cash management is mainly short-term assets, so banks still need to meet some long-term investment and financing needs.

In addition, the financial management department of the bank needs to strengthen communication with the channel department and strengthen the classified and hierarchical management of investors. Because at present, investors acceptance of net worth financial products is still relatively low. But in fact, the change of valuation and pricing method of bank financing does not mean that the risk is increased. Investors can control the risk within the acceptable range by knowing the risk level, investment direction and scope of the product.

Another test for banks is investment research. As mentioned by the vice president of asset management of the city commercial bank, the core of financial management is actually assets. Many financial management is asset driven, not debt driven. If you cant invest in the right assets at the right interest rate position, then it will be difficult to sustain the products and guarantee the income.

As for the continuous decline of return rate of bank financing for more than one year, he told first finance and economics, the decrease of return rate of financing is caused by interest rate environment, but considering that the current return rate of non breakeven financing is close to the structural deposit interest rate, so there is very little downward space.

According to the latest statistics of Puyi standard, the average yield of closed-end expected return RMB products in October was 4.00%, 0.03% lower than that of the previous period.

Source: First Financial Editor: Guo Chenqi, nbj9931