In fact, the early termination of unexpired financial products by banks is not a special case this year. It has appeared as early as 2018.
According to the statistics of Puyi standard, from the beginning of 2018 to October 22, 2020, there are 1618 products in the bank financing market that have been terminated in advance. 1523 of these products were terminated after the release of the new financial regulation, accounting for 94.13%; 785 products were terminated earlier this year, accounting for 48.52%.
Yu Kang, a researcher at Puyi standards, told reporters of the 21st century economic report that the main reason for commercial banks to terminate part of their financial products ahead of time is that the new rules on asset management and financial management break the requirement of rigid deposit.
In order to effectively prevent and control financial risks, the central bank issued the guiding opinions on regulating the asset management business of financial institutions in April 2018, namely the new asset management regulations.
The new asset management regulations require the net value transformation of financial products and strictly restrict the investment of financial products in non-standard assets. Some old products issued in the early stage and with a long original duration cannot automatically expire at the end of the transitional period, which will not meet the regulatory requirements. Therefore, banks can only take the initiative to stop the operation of such products at an appropriate time.
A bank financial staff told reporters: our bank started to prepare to stop very early, and it is also the old products will not be renewed after the expiration.
For example, some financial products with capital preservation will not be sold after the expiration of this month. The above-mentioned staff said, the new regulations on asset management have been introduced in 2018, and the banks have been prepared for it. We planned to stop selling capital guaranteed financial management at the beginning of this year, but it was only delayed for half a year due to the impact of the epidemic.
Many people in charge of bank financial products asked by the 21st century economic report believe that the interest rate (risk-free interest rate or LPR) is in the downward period, and it is likely that interest rates will remain low for a long time, as in the United States. There is indeed cost pressure in banks.
Due to the new asset management regulations breaking rigid cashing, some net worth financial products are more affected, and some even suffer losses. Banks have previously allocated a large proportion of non-standard assets, such as inter-bank lending. However, it will take a certain period of time to dispose of these assets and readjust the allocation ratio. Under the influence of the epidemic situation, banks will have greater pressure to dispose of these assets. The staff said.
The so-called breaking the rigid cashing means that financial institutions should not promise to guarantee the principal and earnings when carrying out asset management business. When cashing is difficult, financial institutions shall not advance funds in any form to cash or carry out asset management business on the balance sheet.
The new regulation also requires that the proportion of non-standard allocation in financial products should not be too high. In this way, if banks can not adjust their asset allocation in time, financial products will not come out.
How to deal with it?
We started to reduce the breakeven financing since 2018, and the concept of breakeven financing was no longer reflected last year. In fact, the amount of breakeven financing has been decreasing, but there are still a few products, she added. For example, a product with 120 days of financial management is robbed in less than 1 minute per week. What we cant get can only buy net value financial management, which is a way to guide investors to change their investment ideas.
Since this year, banks have generally begun to speed up the pace of non net worth financial products. At present, the process of net value transformation of bank financial products is more than half, and the transformation enthusiasm is high.
According to the survey and statistics of Puyi standard, by the end of June 2020, the surviving scale of net value financial products was about 13.24 trillion yuan, with a year-on-year increase of 67%, accounting for 53.82% of the total remaining balance of all financial products, and the net value transformation progress of bank financial products was more than half.
The 21st century economic report reporter noticed that banks have the right to terminate financial products in advance in a number of randomly selected financial product agreements.
The new regulation of asset management is included in the category of national financial policy adjustment as early termination of financial products. In this case, how should banks and investors respond?
In Yukangs view, the transition period of the current new asset management regulations has been extended to the end of 2021. After the transition period is extended, commercial banks should first rectify and standardize the existing old products, and there is no need to terminate the operation of products in advance to damage their reputation. If the rectification can not be completed in the transitional period, commercial banks should fully communicate and negotiate with investors. In addition, it can also help customers to choose alternative products to undertake due funds and avoid customers losses as much as possible.
For investors who have purchased old products, they should clarify the contract terms of the products they hold, pay close attention to the product announcement, understand the trend of product rectification, and timely adjust the asset allocation scheme according to the capital situation if the rectification is in compliance with the requirements. Yu Kang added, at the same time, investors should also understand the trigger conditions for the early termination of the operation of their old products. For managers who fail to comply with the rectification, they can take up legal weapons to safeguard their rights and interests.
A legal related person pointed out to the reporter of the 21st century economic report that whether the bank has the right to terminate the financial products ahead of time depends on the specific agreement. And the reason for the early termination of banks is the introduction of new regulations on asset management, breaking the rigid cashing, which can also be said to be affected by policy adjustment. In this case, it is reasonable for banks to terminate contracts in advance. For investors, the investment risk does not increase if the principal and the interest due can be recovered.
Source: Chen Hequn, editor in charge of economic report in the 21st century_ NB12679