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[to ease the pressure on interest rate spreadsFibaworldcup2023qualifiersphilippinesSome banks have tried to reduce the cost of depositsFibaworldcup2023qualifiersphilippinesHowever, the phenomenon of out-of-order competition in the deposit market is gradually emerging. The market interest rate pricing self-regulatory mechanism recently launched an initiative to prohibit manual collection of savings at high interest rates in order to maintain the order of competition in the deposit market. In the past, many banks have chosen to reduce deposit costs at the strategic level to cope with spread pressure. However, some bank branches and outlets solicit deposits at high interest rates by means of manual supplementary interest in order to meet the requirements of deposit assessment, which leads to fierce competition and disorder in the deposit market. In order to solve this problem, the market interest rate pricing self-discipline mechanism has taken corresponding reform measures. Recently, the market interest rate pricing self-regulatory mechanism issued the "proposal to prohibit the maintenance of deposit market competition order by manually collecting deposits with high interest rates." The initiative clearly requires that from now on, banks shall not break through the deposit interest rate authorization requirements or self-discipline limits in disguise by means of prior commitments, manual interest payments due, and so on. In addition, banks are not allowed to pay interest commitments that have been illegally made on the interest payment date. In order to allow time for banks to adjust and rectify, it is proposed that banks should complete their self-inspection and rectification work by the end of April 2024, and submit the rectification report to the secretariat of the interest rate self-regulation mechanism. The self-regulatory mechanism also stressed that manual interest payments were originally used to correct operational errors and should not be used to circumvent internal pricing authorizations and implement disguised interest rate subsidies. The purpose of this initiative is to maintain the competitive order of the deposit market and promote the healthy development of the banking industry. In the future, banks need to conduct business in a more standardized manner to ensure the sustainable development of business on the premise of abiding by relevant policies. Hexun self-selected Stock Writer risk Tip: the above content is only the views of the author or guest, does not represent any position of Hexun, and does not constitute any investment advice related to Hexun. Before making any investment decision, investors should consider the risk factors related to investment products according to their own circumstances and consult professional investment advisers if necessary. Hexun tries its best but cannot confirm the authenticity, accuracy and originality of the above content, and Hexun does not make any guarantee or commitment.
