www射-国产免费一级-欧美福利-亚洲成人福利-成人一区在线观看-亚州成人

US EUROPE AFRICA ASIA 中文
Opinion / Web Comments

Banks' good days may not last long

By Kevin Keqing Liu (chinadaily.com.cn) Updated: 2012-12-14 23:08

At the start of the current century, Bill Gates predicted that traditional commercial banks could be the last dinosaurs standing. A current development in China is making it seem more likely that he will be proved right.

For the first time in the history of New China, interest rates in renminbi terms are being allowed to float up by 10 percent on deposits, and down by 20 percent on loans, the People's Bank of China, the country's central bank, said earlier this year. As usual, the central bank set the base interest rates for various maturities, including the rate for one-year deposits at 3.25 percent and for one-year loans at 6.31 percent, resulting in a net-interest spread of 3.06 percentage points, which is the same as in 2011.

That means that, to compete for customers, banks may, for a one-year period, raise interest rates on deposits to the maximum of 3.575 percent and lower those on loans to the minimum of 5.048 percent, leaving a net interest spread of 1.473 percentage points. That change, if actually adopted, will bring about what we have been talking about for three decades — "striving for Chinese practices that are geared to international norms".

In comparison, the Hong Kong and Shanghai Banking Corp's net-interest spread was 2.32 percentage points in 2011 and down to 2.16 in the first half of 2012.

If the central bank's new decision isn't acted on, the Chinese banks' net-interest spread of 3.06 percentage points will be 0.74 percentage point higher than HSBC's in the 2011 and 0.90 percentage point higher its in the first half of 2012.

Don't underestimate the effects of the tiny gap. For instance, the Industrial and Commercial Bank of China, China's largest bank and the recipient of 589.58 billion yuan ($93.73 billion) in interest income in 2011, will, based on an average annualized loan amount, receive from 69.14 billion yuan to 84.09 billion yuan less if its net interest spread drops by 0.74 to 0.90 percentage point. In other words, it would receive an extra 189 million yuan to 230 million yuan a day, an amount equal to a small, well-managed company's accumulated profits for 10 years.

Although rarely do China's commercial banks fully follow the central bank's guidelines on floating interest rates, the signal has been clear — gone are the days when the banks made easy, stable money, rain or shine. Allowing interest rates to float freely is a common practice among other large economies. As China’s financial reforms become deeper, users of banking products and services may reasonably expect that, in the next three to five years, interest rates will no longer be artificially set by the central bank but be determined by market forces. That will further shake banks' dominance.

Not only are banks being adversely affected from within, their comfortable position is also threatened from the outside — by 197 Internet- and mobile device-based third-party payment solution providers that have been licensed by the central bank to conduct online payments, bankcard payment execution and pre-paid cards issuance. They include Alipay.com under Alibaba, and Tenpay.com of Tencent.

Another nightmare has occurred for banks. The huge amount of funds that sink with the online payment companies during the payment execution process has enabled them to lend out small loans to micro-sized and small online stores.

Online payment companies have been invading banks' territory — deposit taking, loans and payment execution. Although payment companies' chief source of money is not deposits, they are eating into that part of banks' business.

Shock waves are also coming from telecommunication carriers, Internet companies, e-commerce-shopping malls and bankcard organizations that are, thanks to innovations in their technologies and business models, working together to nibble away at the banks' market share.

Banks won't be easily reconciled to seeing a cloud overhanging their future prospects. They are striking back by establishing online-shopping malls and offering mobile-device payment services in an attempt to strengthen their bonds with clients. But their achievement so far has been nominal. The value of sales at the e-shopping mall that China Merchants Bank started about 10 years ago for? credit card holders, for example, was merely 700 million yuan in 2011, or only a third of Taobao.com’s single-day transaction amount, which was reported to be around 2 billion yuan last year.

Indeed, the banks' good days may not be over immediately, but may not last long, either.

The author is a former banking professional and now a freelance writer who has been published extensively in the Chinese mainland, Hong Kong SAR, Germany and Singapore.

Most Viewed Today's Top News
...
主站蜘蛛池模板: 特及毛片 | 国产成人精品亚洲777图片 | 国产毛片一级国语版 | 欧美的高清视频在线观看 | 涩涩国产精品福利在线观看 | 欧美性色生活片免费播放 | 国产成人一区二区在线不卡 | 日韩成人在线观看视频 | 国产视频中文字幕 | 精品在线网站 | 国产偷国产偷亚洲高清在线 | 成年女人毛片免费观看中文w | 欧美性高清视频免费看www | 狠狠综合久久久久综合 | 神马午夜-午夜片 | 美国一级毛片不卡无毒 | cao草棚视频网址成人 | 在线午夜影院 | 无内丝袜透明在线播放 | 91精品国产91久久久久青草 | 99精品小视频 | 中文字幕亚洲天堂 | 在线中文字幕播放 | 99成人精品 | 中文字幕亚洲欧美 | 日本一在线中文字幕天堂 | 亚洲视频成人 | 国产区二区 | 国产精品特黄毛片 | 久草视频大全 | 欧美一级一级片 | 成人黄色一级视频 | 伊人久色 | 亚洲午夜片子大全精品 | 亚洲一区浅井舞香在线播放 | 中文字幕一级片 | 美国毛片网 | 男人天堂亚洲 | 午夜刺激爽爽视频免费观看 | 免费国产黄 | 亚洲第一视频网站 |