Core Viewpoint - Zhejiang Commercial Bank is facing scrutiny due to multiple regulatory violations related to deposit and loan management, raising concerns about its ability to attract deposits amid increasing competition in the banking sector [1][2][4]. Regulatory Violations - Zhejiang Commercial Bank's Shanghai branch was fined 16.8 million yuan for 15 violations, including inflating deposit figures and improper credit card management [1]. - The Chongqing branch was fined 1.7 million yuan for similar issues, including increasing corporate financing costs through disguised "deposit-loan linkage" practices [2]. Deposit Challenges - The bank's deposit growth has been under pressure, with a reported increase of only 8.297 billion yuan in the fourth quarter of 2024, and a decline in deposits compared to the first half of the year [4][5]. - As of September 30, 2024, the bank's total deposits were 19,139.92 billion yuan, reflecting a 2.43% increase year-on-year but a decrease of 24.487 billion yuan from the previous quarter [2]. Comparison with Peers - In contrast, other banks like Pudong Development Bank and Minsheng Bank reported significant deposit growth, with Pudong adding 213.229 billion yuan in a single quarter [4]. - The overall banking sector saw a substantial increase in deposits, exceeding 16.62 trillion yuan in the third quarter of 2024, highlighting Zhejiang Commercial Bank's struggles [4]. Internal Management Issues - The bank's management has faced significant changes, including the resignation of its president, which may have contributed to the decline in deposit levels [6][7]. - The bank's credit risk is rising, with overdue loans increasing by 20.6% year-on-year, and a decrease in the provision coverage ratio to 178.67%, the lowest in three years [8][10]. Financial Performance - As of December 31, 2024, the bank's overdue loans reached 391 billion yuan, a 40.77% increase from the previous year, indicating challenges in loan management [10]. - The bank's non-performing loan ratio increased to 1.42%, reflecting ongoing difficulties in maintaining loan quality [10].