16 bank lies the secret of making money.

16 The secret of making money by banks lying down

1. The secret of making money by deposit-loan difference: the scale, term and risk conversion of funds

1. Deposit-loan difference: the difference between deposits absorbed by banks and loans released, the difference between the two interest rates is the deposit-loan difference. This is the most important source of profit for banks. About 3/4 of the bank's income.

2. Banks will make some investments themselves. For example, about 9% of the national debt in China is purchased by commercial banks. He will invest in safer assets such as bonds.

3. Channel business fees. When we go to the bank to buy wealth management products, most of them are actually cooperation between banks and other financial institutions. Banks actually only play the role of "channel" here, so channel fees are also an important source of bank profits.

As for the familiar bank fees, in fact, they are relatively low in the profits of banks, especially joint-stock banks. Generally, in order to attract customers, they will waive the fees.

These three profits actually depend on the size of the bank and its ability to absorb deposits. That is to say, the stronger the bank's ability to absorb deposits, the better life will be and the more money will be made.

how on earth did the bank earn this deposit-loan difference through what mechanism? (The scale, duration and risk of fund matching. )

1. Scale conversion. Under the national credit endorsement, banks can absorb a large number of small-scale deposits and gather them for those who need a lot of money.

2. Term conversion. Banks match the funds gathered at different time points to those people with different use periods, one year, two years and five years.

3. Risk conversion. Banks also need to bear the risk that loans will not be recovered.

(There are two villages. The villagers in one village are relatively rich and have money in their hands. The other village is engaged in various industries, brewing, logging and so on, and needs funds, so everyone wants to borrow money from the village next door. Now the problem comes. For example, if you engage in processing industry, you need a lot of money, but no household will have that much spare money, so you need to borrow more, which is the difference in scale. Also, it will take you several years to start the processing industry, but the borrowers are worried about the liquidity of their families and are unwilling to lend it for such a long time. This is called the difference in terms of time. There are more people who are completely unfamiliar with the people in the village next door, have no credit, and people don't trust you. You can't borrow money. This is called a difference in risk. These points are called the scale, duration and risk of capital matching in classical banking.

In addition, in order to ensure the safety of borrowing money, every household has to sign a contract and make a treaty with the borrower, and in case the other party defaults, they have to collect debts, which is called transaction cost. Therefore, it is not so simple to complete an effective fund matching between these two villages.

At this time, the role of banks appears. First of all, banks can absorb small deposits from many villagers and then gather them for those who need a lot of money. This is called scale conversion. Second, banks match the funds gathered at different time points to those who have different use periods, one year, two years and five years, and make a time difference. This is called term conversion. Third, banks have to bear the risk that loans will not be recovered, which is called risk conversion.

through these three transformations, the bank has realized the effective communication of funds between the two villages, and the villagers and economic development of the two villages have benefited, and the banking industry can earn fees from the difference between deposits and loans. Just now, I said that the transaction cost as large as each household can also be shared equally among all depositors and loans. So after the emergence of banks, let's solve all the problems we just mentioned. This is the role of banks, and banks can earn the difference between deposits and loans through this mechanism.

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Second, there are two reasons for China Bank to make money lying down: bank monopoly and high-speed brokerage growth

1. The entry threshold of China Finance is very high, and the license control is strict.

2. Our country has been in a state of rapid growth for more than ten years, with many investment opportunities and high profits. From 23 to 213, it was called "golden decade of China Banking".

Third, the new format of polarization between the rich and the poor in the banking industry: interest rate marketization and economic growth decline

After 212 and 213, the banking industry also began to have a huge polarization between the rich and the poor, and the rich banks were on the verge of bankruptcy. There are two main reasons:

1. The entry threshold of banks has been lowered. After 2, the market competition in the banking industry has been implemented, and the issuance of bank licenses has been relaxed. There were 4 banks in China around 2. How many are there now? More than 4,. Competition intensifies, resulting in differentiation.

2. From 212 to 213, the state began to promote interest rate marketization and liberalized the control of deposit interest rates. In other words, in order to attract depositors, banks naturally have to raise the deposit interest rate, and the cost of the whole industry is rising, so the corresponding profits are naturally declining. The slowdown in national economic growth means that there are fewer opportunities for high-profit investment, so the demand for loans declines and the interest rate will slowly come down.

So from the current situation, the good days when all banks make money have gradually gone, and the competition faced by the banking industry is becoming more and more fierce. The competitive pressure between banks and many competitive pressures from outside will make this differentiation more and more fierce. Therefore, as long as the products of banks are safe and as long as they are good, this situation no longer exists, and good banks and bad banks will certainly be produced in this process.

Summary:

1. The difference between deposit and loan is the main source of bank profits, and it is earned mainly through the scale, term and risk conversion of funds.

2. Interest rate control and high brokerage growth rate are a big background of China banking golden decade.

3. The marketization of interest rates and the decline of brokerage growth rate have brought an end to the era of all lying down to make money. The gap between the rich and the poor in China has widened, and the national big banks are still giants, while the local small banks will have poor living conditions.

Thinking questions:

You must have noticed that the Internet economy has developed rapidly in recent years, and the power of Internet companies has become more and more powerful. Some Internet giants have begun to penetrate into the financial field. For example, Ali has set up an online merchant bank, and Tencent has set up a micro-bank, and they have all obtained banking licenses. Then I want you to think about it in combination with today's content. In the future, will such banks replace traditional banks and become enterprises that make money while lying down?

It is based on the rapid development of the national economy and interest rate control that banks make money while lying down. However, it is unlikely that online merchant banks will replace traditional banks due to the slowdown of economic growth in the early stage, marketization of interest rates and fierce market competition. Unless there is another decade of rapid growth, and the state strongly supports such banks.

The time spent lying down is just the time spent. It takes not only time, but also innovation and homeopathy to make one's own enterprise stronger, more influential and have the right to speak. Just like the impact of Alipay and WeChat payment on banks, Internet banking will inevitably have an impact on traditional banks, thus promoting a new round of bank reform. There is still a long way to go.

Our country's top-down financial system is dominated by the government, and most financial resources are in the hands of the state. The country has entered a new stage of development. Will this government take the lead and change in the future?

(Depositors can be divided into Class I households, Class II households and Class III households.

Class I account is a full-featured bank settlement account. Depositors can make deposits, purchase financial products such as investment and wealth management products, withdraw cash, transfer money, spend money and pay fees through Class I account. The difference between Class II and Class III accounts and Class I accounts is that they can't access cash or transfer money like unbound accounts. Internet banks can only open Class II and Class III households, and cannot open Class I households as traditional ones, which makes it difficult for Internet banks to collect deposits like traditional banks. )

The above content comes from the course "Xiang Shuai's Peking University Finance Course"