In the past two years, many business changes of financial institutions are closely related to the requirements of new asset management regulations.
For example, the transformation of bank financial products mainly relies on cash management products, because cash management products can be accounted by using the method of amortization cost compared with monetary funds. The scope of investment is wider than that of monetary funds, and the rate of return is higher. Therefore, as an important product in the transition of asset management transformation, it plays an alternative role in the current deposit of residents, and it also highly overlaps with the banks customer group. The yield and convenience of cash management products have greater advantages than demand deposits, but such products have higher credit risk and liquidity risk. Xiao Gang said.
At present, there are still differences on the nature and positioning of this product. Are cash asset management products a strict liquidity management tool or a financing tool? As a financing tool, it has a wide range of investment and can play a supporting role in the real economy. However, its wide range of investment means that credit risk and liquidity risk will come at any time.
For another example, in order to speed up the transformation of financial products, banks accelerate the development of structured deposit products, which are the best alternative products of bank principal guaranteed financial products. Structured products should be linked to derivatives and have investment risk. In order to transform to net asset management products, structured deposits once appeared a blowout.
But in fact, quite a lot of them are fake structured deposits, which in fact have become a kind of high interest rate deposit soliciting. The structural deposit balance of Chinese banks has reached 11.84 trillion yuan by the end of May this year, Xiao said. After June, both the volume and price of structured deposits dropped. In June alone, there was a decrease of more than 100 billion yuan compared with May.
It should be noted that while promoting the transformation of the liability side, the pressure on the asset side of the bank is increasing. In the first half of the year, the banks on balance sheet credit increased by 13 trillion yuan, and some of the original product funds need new funds to continue. Xiao Gang said, in order to exaggerate the proportion of net worth financial products, some banks have adopted some non-compliance measures. The net worth curve of some new products is extremely smooth without market fluctuation. Some even transfer high-yield assets to assets that have already suffered losses, so as to smooth the income gap between the two. In fact, they have realized the rigid exchange in disguise.
This years challenge also lies in a substantial increase in new bank credit, while at the same time making up for the funding gap of old products. Xiao Gang believes that in the transformation of financial products, we must adhere to the principle of seeking truth from facts, fully respect the reality, and should not be too hasty. We should really implement one line and one policy to prevent one size fits all and one step at a time.
Xiao Gang also stressed that the development of asset management institutions after the transformation must be carried out in accordance with the fiduciary obligations in the securities law and the securities investment fund law. If we continue to engage in channel business like the original one, we will not only violate the regulations, but also bear legal responsibility if we lose the case. He said.
Xiao Gang said that, for example, the credit reference documents that clearly do not conform to the new regulations on asset management can be regarded as rigid cashing; if the credit reference documents are issued, if they do not comply with the new regulations, they are identified as the minimum guarantee or rigid cashing terms, which are invalid in law; for example, it has made provisions on the principle of the appropriateness of the products sold by the asset management institutions, so as to clarify the appropriateness obligation of the sellers organization in recommending sales.