The impact of Yu’e Bao on the profitability of state-owned banks

It damages the bank’s monopoly spread income.

The reason why banks broke with Alipay is because Alibaba launched Yu’e Bao. At present, Yu'e Bao's capital scale may exceed 500 billion yuan, while Alipay's capital scale is about 100 billion yuan. According to rough calculations, the two account for nearly 1.4% of my country's savings deposit balance (the balance of my country's residents' savings deposits in 2013 was 44 trillion yuan). This is intolerable for banks. Firstly, it causes the loss of deposits of commercial banks, and secondly, it damages the banks' monopoly spread income.