Recently, some private banks have notified depositors that online channels such as mobile banking apps have opened deposit certificate issuance services; many private banks also use eye-catching large characters to indicate "Our bank has participated in deposit insurance" on various online channels. One of the reasons behind the seemingly ordinary promotional activities may be closely related to the recent decline in the confidence of some customers in the online deposit products of private banks.
Savers' concerns are not groundless. Affected by the recent turmoil over deposits in rural banks in some areas, depositors have given up on higher interest returns and withdrawn unexpired time deposits from these private banks, instead depositing them in major state-owned banks with lower interest rates. Some depositors also said that they will carefully choose Internet deposit channels from various financial institutions in the future.
In recent years, problems such as the slowdown in performance growth of private banks and frequent changes in executives and shareholders have become factors of concern for savers. In fact, it has only been more than seven years since the birth of private banks in New China. Compared with traditional banks, due to their late start, lack of offline outlets, low brand awareness, and gradual tightening of regulatory policies, the liabilities of these banks have continued to increase, and their liquidity risk pressure has increased. Some banks have even taken desperate measures to expand business in other places or engage in illegal related-party transactions.
Various phenomena reflect that the daily operational security of small and medium-sized financial institutions has become an important reference for financial consumers to pay attention to and make decisions. It is true that it is understandable for depositors to withdraw their deposits out of concern, but they should also remain calm when looking at the daily operating issues of financial institutions, and should avoid listening to unreliable rumors, which may cause unnecessary personal financial losses or even lead to greater risks.
The deposit insurance system has been running smoothly since its implementation seven years ago. The principal and interest of deposits of individuals, enterprises and other entities are within the scope of protection. Even deposits that exceed the maximum repayment limit of 500,000 can also resolve risks through market-oriented means of financial institutions, so that the safety of personal deposits is further protected. The full payment of personal depositors' deposits at Baoshang Bank is a typical example.
As regulatory authorities have intensified their efforts to "precisely dismantle" key high-risk financial institutions in recent years, the number of high-risk small and medium-sized financial institutions in my country has dropped significantly. According to central bank data, as of the end of 2021, the total assets of 316 high-risk institutions accounted for only 1% of the total assets of the banking industry. It can be said that the safety of bank deposits of the vast majority of people can withstand the test of time.
The guarantee of the system is indeed the basis for the safe and stable operation of my country's financial institutions. However, in order to dispel customers' doubts to a greater extent and gain broader trust from customers, small and medium-sized financial institutions such as private banks have a long way to go. On the one hand, small and medium-sized financial institutions such as private banks should further straighten out shareholder equity and related relationships, and create stable and efficient management teams; on the other hand, small and medium-sized financial institutions such as private banks should solidly prepare basic liabilities, innovate products and service forms within the scope of regulatory policies, increase cooperation with other banks and other financial institutions, implement differentiated development strategies, increase the supply of high-quality services, and thereby enhance customer stickiness.
