Core Viewpoint - The upcoming National Day and Mid-Autumn Festival have triggered a new round of deposit marketing among local banks, with various promotional strategies being employed to attract depositors, including higher interest rates and gift incentives. However, the declining interest rate environment poses challenges for sustainable deposit growth and customer retention beyond mere financial incentives [1][5]. Group 1: Deposit Marketing Strategies - Local banks are intensifying their deposit marketing efforts by launching unique deposit products with slightly higher interest rates than standard fixed deposits, as well as implementing gift and points redemption strategies to attract customers [1][3]. - For instance, Pujiang Rural Commercial Bank introduced a "Filial Piety Deposit" product with a 3-year interest rate of 2% for a minimum deposit of 100,000 yuan, while standard fixed deposit rates for similar terms are lower [3]. - Fudian Bank has diversified its deposit product offerings, including large-denomination certificates of deposit and special products for new customers, with interest rates ranging from 1.45% to 1.95% depending on the term [4]. Group 2: Challenges and Regulatory Concerns - The competitive advantage of local banks in terms of high interest rates has diminished due to multiple rounds of rate cuts, leading to a convergence with industry averages [4][5]. - The use of gift incentives for deposit attraction raises regulatory concerns, as such practices may violate guidelines against improper deposit solicitation methods [8][12]. - The regulatory environment has tightened, with explicit prohibitions on using gifts or cash returns to attract deposits, which could impact the marketing strategies of local banks [8][12]. Group 3: Long-term Strategies for Sustainability - Experts suggest that local banks need to shift from price competition to enhancing non-price competitive advantages, such as improving service capabilities and risk management [5][9]. - There is a need for local banks to integrate financial services with community needs, leveraging public service scenarios to enhance customer loyalty and deposit retention [10][11]. - Innovations in financial technology, such as blockchain for smart settlements and big data for risk management, are recommended to improve operational efficiency and reduce reliance on high-cost deposits [11].

Core Viewpoint - The article discusses the controversy surrounding Yilian Bank's decision to potentially redeem a specific deposit product early, which has raised concerns among customers regarding interest loss and regulatory compliance [1][3]. Group 1: Early Redemption of Deposit Products - Yilian Bank is reportedly considering early redemption of its "3-Year Exclusive Deposit" product, which has a comprehensive annual interest rate of 4.2% [1][4]. - Customers received notifications about the early redemption, which could result in a loss of nearly one year of interest for those who purchased the product [3][4]. - The bank's customer service denied any current plans for stopping payments on any products, stating that any adjustments would be announced through official channels [1][3]. Group 2: Interest Rate Structure - The "3-Year Exclusive Deposit" product has a base annual interest rate of 2.95%, supplemented by a reward interest rate of 1.25% related to the study of the "Deposit Insurance Regulations," leading to a total of 4.2% [4]. - Other deposit products from Yilian Bank also feature similar reward structures, indicating a trend in their offerings [4]. Group 3: Third-Party Involvement - Customers were required to sign an agreement with a third party, Hunan Chengshengde Technology Co., Ltd., to receive the additional interest, indicating a complex structure behind the interest rates [6][7]. - This third-party arrangement raises concerns about potential regulatory evasion regarding deposit interest rates [8][9]. Group 4: Financial Performance and Challenges - Yilian Bank has faced declining revenues and profits since 2020, with reported revenues of 10.65 billion yuan in 2023 and a net profit loss of 5.9 billion yuan in 2024, marking it as the only loss-making private bank among its peers [12][13]. - The bank's total assets and liabilities have significantly decreased, with total assets dropping by 21% to 40.822 billion yuan and total liabilities also decreasing by 21% [12][13]. - The bank's heavy reliance on personal time deposits, which account for over 84% of its deposit balance, has created pressure on its financial stability, especially in a declining interest rate environment [13].

Core Viewpoint - The news revolves around Yilian Bank's decision to potentially redeem a specific deposit product early, which has raised concerns among customers regarding interest loss and the bank's financial practices [1][2]. Group 1: Early Redemption of Deposit Products - Yilian Bank is reportedly considering early redemption of its "3-Year Exclusive Deposit" product, which has a comprehensive annual interest rate of 4.2% [1][2]. - Customers have expressed concerns that early redemption would result in a loss of nearly one year of interest, as the product was originally set to mature in September 2026 [2]. Group 2: Interest Rate Structure - The "3-Year Exclusive Deposit" product's interest rate consists of a base rate of 2.95% plus an additional 1.25% linked to a third-party incentive related to the "Deposit Insurance Regulations," resulting in a total of 4.2% [2]. - Other deposit products from Yilian Bank also feature similar structures, such as the "Good Yilian 32-Day" product with a total rate of 3.6% and the "Exclusive 366-Day" product with a total rate of 3.8% [3]. Group 3: Third-Party Involvement - Customers are required to sign an agreement with a third party, Hunan Chengshengde Technology Co., Ltd., to receive the additional interest, indicating that the incentive rates are not fixed and may fluctuate [4]. - Hunan Chengshengde has previously been involved in Yilian Bank's promotional activities, raising concerns about the legitimacy of these practices [5]. Group 4: Financial Performance and Challenges - Yilian Bank has faced declining revenues and profits since 2020, with a reported net loss of 5.9 billion in 2024, making it the only loss-making bank among 19 private banks that year [7]. - The bank's total assets and liabilities have both significantly decreased, with total assets dropping by 21% to 408.22 billion and total liabilities also down by 21% to 379.66 billion by the end of 2024 [8]. - The bank's heavy reliance on personal fixed deposits, which account for over 84% of its deposit balance, has created pressure, especially in a declining interest rate environment [8].

Core Viewpoint - The popularity of Labubu, an IP under Pop Mart, has led to a surge in demand, prompting banks to offer promotional activities involving Labubu blind boxes as incentives for deposits, although such marketing strategies have faced regulatory scrutiny and subsequent bans [1][2][4]. Group 1: Marketing Activities - Several branches of Ping An Bank in cities like Xi'an, Shijiazhuang, and Wuhan launched a promotion where new customers could receive Labubu blind boxes by depositing at least 50,000 yuan for a minimum of three to six months [1]. - The promotional strategy aimed to attract more customers amid declining deposit rates and increased competition among banks [1][5]. Group 2: Regulatory Environment - Financial regulatory authorities in the Yangtze River Delta region reiterated a ban on banks using physical gifts or collaborations with internet platforms to attract deposits, requiring immediate cessation of such activities [2]. - The 2018 regulation explicitly prohibits banks from using improper means, such as cash returns or physical gifts, to attract deposits, with multiple banks having faced penalties for violating these rules [4]. Group 3: Financial Implications - The effective cost of the Labubu promotion, when calculated, suggests that the annualized interest rate for a three-month deposit of 50,000 yuan could reach approximately 2.27%, exceeding the typical rates of 1% to 1.5% offered by banks [4][5]. - Concerns have been raised that if banks continue to use such promotional tactics, it could lead to a "gift competition" that raises overall deposit costs and disrupts healthy competition based on service quality [5]. Group 4: Recommendations for Banks - Experts suggest that banks should focus on enhancing service quality and product offerings rather than relying on gift promotions to attract deposits, which could increase non-interest expenses and hidden liabilities [5][6]. - There is a call for banks, especially smaller ones, to shift their operational strategies away from merely pursuing deposit growth towards better asset-liability management and sustainable development [6].

Core Viewpoint - Recent regulatory measures have been implemented to curb "fancy" deposit solicitation practices by banks, with a clear timeline for the exit of related non-compliant activities by the end of 2025 [1][3][4] Summary by Relevant Sections Regulatory Measures - Local regulatory authorities have introduced multiple prohibitive regulations aimed at various deposit solicitation methods, including manual interest supplementation and the issuance of interest coupons [3][4] - The regulations also prohibit banks from offering physical gifts or collaborating with internet platforms to provide membership benefits as a means of attracting deposits [4][6] Impact on Banks - The decline in deposit interest rates has increased the pressure on banks to attract deposits, leading to the emergence of various unconventional solicitation methods [3][5] - Smaller banks, in particular, are more likely to resort to "fancy" solicitation practices due to their weaker brand influence and network coverage compared to larger banks [5][6] Compliance and Management - The regulatory framework emphasizes the need for banks to enhance compliance management regarding deposit solicitation activities, with immediate cessation of non-compliant products and a structured exit plan for existing ones by 2025 [6][7] - Experts suggest that banks should shift focus from high-cost solicitation methods to improving service quality and product innovation to attract depositors sustainably [7][8]