Many Banks Deposit Loan Ratio Close To The Warning Line &Nbsp; Illegal Storage Is Difficult To Become Straw.

"We have to reach a certain amount of deposit every month, which is the main source of bonus."

Listed banks annual report shows that there are 7 joint-stock commercial banks loan to deposit ratio between 71%-75%, close to the regulatory red line.

In the face of the hard benchmark of loan to deposit ratio and the impulse to lend, it is particularly important for banks to deposit money.

However, the illegal interest rate collection has been dubbed "non industry lending".

Listed banks deposit loan ratio approaching regulatory red line

With the expansion of credit in 2009 and 2010, the loan to deposit ratio of commercial banks in China is close to the "warning line".

By the end of 2010, the deposit and loan ratio of China's banking financial institutions was 69.4%, 0.10 percentage points lower than the beginning of the year.

Of course, from the perspective of profit maximization of listed banks, the loan to deposit ratio is closer to 75%, and the corresponding interest income should be higher.

However, too close to the regulatory standards will make it difficult for banks to release their business and carry out systematic risks.

The annual report shows that the loan to deposit ratio of China Merchants Bank, Shenzhen Development Bank, CITIC Bank, Minsheng Bank, Xingye Bank and Everbright Bank is 74.59%, 72.37%, 72.83%, 72.74%, 71.21% and 71.15%% respectively.

In addition, the deposit and loan ratio of Huaxia Bank is 67% and that of Shanghai Pudong Development Bank is 69.96%.

The average deposit to loan ratio of the 8 shareholding listed banks is 71.47%.

In the case of China Merchants Bank, which has the highest deposit to loan ratio, its loan to deposit ratio in 2008 -2010 was 70.75%, 73.69% and 74.59% respectively.

Among them, the annual report of a joint-stock commercial bank shows that in the first 5 months of last year, its loan to deposit ratio exceeded 75% of the regulatory red line, resulting in a sharp decline in credit in the bank. In July, the monthly loan increment was - 13. 5%, which made the loan to deposit ratio within the regulatory red line.

The huge pressure of deposit to loan ratio also makes banks take the deposit as a business goal. For example, the only requirement of CITIC Bank in 2011 is to add deposits of 300 billion yuan or so.

According to China Merchants Bank, "according to the current business environment, the company's self financing loan scheme increased by 210 billion yuan in 2011, and the self deposit plan increased by about 300 billion yuan."

From the analysis of China Merchants Bank's plan, the loan to deposit ratio of the new part is equivalent to 70%, which is expected to effectively reduce its loan to deposit ratio.

Illegal stock collection and frequent occurrence of joint-stock banks into a serious disaster area

In the past, regulators used the assessment method of monthly average loan to deposit ratio and annual average loan to loan ratio.

In order to make the loan to deposit ratio meet regulatory requirements, some banks use high interest to collect and store high priced trading means to attract customers' deposits.

"In order to cope with regulatory requirements, many banks take measures such as pferring financial items, storing and selling loans and other measures at the end of the quarter and the end of the month to solve the deposit loan ratio problem," a partner of a large accounting firm familiar with the banking industry told the Securities Daily reporter.

In September 17th last year, the CBRC disclosed for the first time the penalty decision of 8 branches of 6 banks.

Of the 6 banks, 5 are joint-stock commercial banks and 1 are state-owned big banks.

The relevant departments of the CBRC pointed out that these banks had the following kinds of illegal storage behavior: first, to raise interest rates arbitrarily; two, to take interest rates in secret, to set up interest rates, to save money, to reduce or cancel other business fees, to give in kind or cash (including delivery cards, securities, etc.), to provide domestic tourism, to pay children's tuition fees, to arrange employment for relatives, and to raise interest rates in disguise; the three is to pay deposit fees, joint storage fees, fees and other improper charges to the deposit intermediary; four, to send cash, gift or shopping cards to clients through credit cards, purchase of financial products, and third party depository management.

A joint-stock bank sub branch pointed out that joint-stock banks have fewer outlets than state owned large banks and have great pressure to absorb deposits. If there is no preferential interest rate, it is difficult for depositors to deposit deposits in small and medium-sized banks.

Without deposits, there will be no money to lend, and profitability will be greatly reduced.

In April 10th, Professor Guo Tianyong, director of the banking research center of Central University of Finance and Economics and professor of Finance School (micro-blog columnist), publicly stated that "at the end of the first quarter, banks continued to carry out the war of preservation and fighting. They fought fiercely and repeatedly, and several banks launched a one day financial product targeting in March 31st."

He also revealed that he had recently communicated with the bankers that a bank had paid 80 thousand yuan interest to the customer who deposited 10 million yuan on March 31st.

Banks should change this single time point assessment method. "

Fu Wenzhong, general manager of the joint information center of the bank, replied, "this is the highest interest rate."

The trend of daily average assessment is inevitable.

As early as last year's fourth financial and economic situation briefing, the CBRC proposed that we should discard the unscientific practice of performing performance appraisal at the end of the month and the end of the quarter, establish the monthly average deposit statistics system, and monitor the liquidity level according to the monthly average daily loan.

According to media reports, last year, the CBRC only requested 75% regulatory requirements at the end of the quarter. In the first quarter of this year, it was required to declare the deposit to loan ratio at the monthly rate, and the two quarter will be further refined to declare the daily average loan to loan ratio in the monthly assessment cycle.

In addition, the loan to deposit ratio is mainly due to the requirement that the final value is less than 75%, and the average daily demand for follow-up is less than 75% per month.

Analysts believe that, at present, the deposit reserve ratio of large financial institutions has reached 20.5%, if the bank's loan to deposit ratio of 75%, which means that banks in addition to loans, liquidity assets are less than 5%, the realizable investment assets are very limited.

If some large depositors take their deposits away, banks will be exposed to obvious liquidity risks.

However, the annual report also shows that the loan ratio of state-owned banks is still relatively low, and the savings and loan ratios of ICBC, CCB and ABC are below 70%, especially for ABC only 55.77%.

According to the insiders, large commercial banks have many outlets and large pool of funds due to their systematic advantages. Therefore, they have the ability to borrow money from small and medium-sized banks to solve their liquidity problems.

"But if the average daily loan ratio is fully implemented, the big banks must be more reasonable in terms of resources, and it will be more prudent for peer lending, and lending to large banks will no longer be easy."

Lian Ping, chief economist of Bank of communications, thinks that the assets quality of banks at present is generally stable compared with those below 70%, and the regulatory pressure on daily average loan to deposit ratio is not large. However, the pressure on banks with some loan to deposit ratios above 70% is approaching the regulatory red line.

However, this is conducive to identifying the risks of small and medium banks, and urging them not to sprint in the end of the month or at the end of the season, but to strengthen their usual liquidity management.