What are the risks of "structured deposits" in banks at present?

I believe many people have heard of the product of structured bank deposits, but few people can really understand the essence of this product. Although many people are buying, they are still confused. I don't know if there is any risk in this product, and where is the risk?

Many people don't know whether structured deposits are bank deposits or bank wealth management products.

201910/8 The China Banking Regulatory Commission issued the Notice on Further Regulating the Structured Deposit Business of Commercial Banks, which clearly defined the structured deposit, established its essence and standardized the structured deposit business of banks.

Structured deposits are well known. After the release of the new financial regulations, because banks have broken the rigid redemption, traditional capital preservation financial management no longer promises capital preservation. Ordinary people are skeptical about non-guaranteed wealth management products and dare not buy them with their eyes closed as before, but there is still demand. The market needs a substitute for capital preservation and financial management to meet everyone's investment needs.

It is under such a historical opportunity that structured deposits have entered everyone's field of vision and filled the market gap left by the disappearance of capital preservation and financial management.

In the new rules on structured deposits, the definition of structured deposits is as follows:

Generally speaking, when we buy structured deposits, banks will divide the funds into two parts, most of which will be used as time deposits to obtain stable income, and a small part will be used to buy "financial derivatives" to obtain high income.

Financial derivative instrument is a special financial instrument, which comes from primary basic assets, such as gold, stocks, bonds, interest rates, exchange rates, indexes and so on.

Common types of derivatives are futures, options, forward contracts and swaps.

We know that the essence of structured deposit is bank deposit, so it has the same characteristics of capital preservation as ordinary bank time deposit, that is, the principal is safe.

Because structured deposits are linked to financial derivatives, and financial derivatives are risky and the income fluctuates greatly. In extreme cases, this part of the income may be zero.

Observing the structured deposit products issued by some banks, the maximum fluctuation range of income is 0~9%. Up to 9%, which is three times of the five-year ordinary time deposit of the bank; The lowest may also be 0.

Therefore, structured deposits have certain investment risks, which are greater than ordinary bank time deposits. Mainly manifested in the uncertainty of income.

Through the above explanation, I think everyone should understand the definition and essence of structured deposits.

It is also necessary to understand the relationship and differences between structured deposits and ordinary bank deposits and bank wealth management products.

In this way, when we choose to buy bank structured deposits, we will know fairly well.

Theoretically, the principal of structured deposits issued by banks is zero risk, and the biggest risk comes from the uncertainty of their final income.

Structured deposit, although it has the word "deposit", is actually not a pure deposit product.

Generally speaking, deposits talk about "interest" and structured deposits talk about "income".

From the analysis of the nature of structured deposit, it is more like a capital-guaranteed wealth management product. Its internal composition is the wealth management products of deposits and financial derivatives. The deposit part guarantees the principal security and provides some interest income, and the financial derivatives part is used to improve its expected rate of return, which ultimately determines the final income of structured deposits.

Structured deposits, the assets included in the bank's balance sheet, are protected by deposit insurance to ensure the safety of principal;

At the same time, when issuing structured deposits, banks need to register in official website and China financial networks, and provide investors with financial registration codes, so that investors can distinguish the authenticity of structured deposit products. At the same time, Bank official website will provide information disclosure of structured deposits, and investors can pay attention to relevant channels to determine the authenticity and risks of structured deposits.

When purchasing wealth management products, the bank will provide investors with a wealth management product manual, and you can check the authenticity of structured deposits through the registration code on the manual.

Due to its internal composition and the income from investing in derivatives, the expected rate of return of structured deposits is generally higher than the interest rate of fixed deposits with the same term.

Similarly, because we invest in financial derivatives, we mainly invest in indexes, exchange rates, gold and so on. These are investment products with highly volatile returns, and they will lose money due to market changes.

Therefore, even if the bank's advertised rate of return can be at a certain value, it is rare to really reach the advertised rate of return when it expires. Therefore, the biggest risk of structured deposits is that yield to maturity fails to meet expectations, and even the yield may be zero.

If banks have extreme situations such as credit risk, such as bankruptcy liquidation, the principal and income payment of structured deposits will inevitably be affected. Even if there is deposit insurance protection, it can only protect the deposit part of structured deposits and the investment principal of investors within 500 thousand.

At present, there are actually two types of structured deposits. The first is the term structure. The target of the hook, such as the three-month Shanghai Interbank Offered Rate, is set at more than 2.5%. On a certain day before the product expires, such as the tenth day before the expiration as the observation day, the three-month Shanghai Interbank Offered Rate is 2.6%, so it will expire under normal circumstances. If it is only 2.4%, the product will be terminated in advance, but its rate of return is still agreed in the subscription specification. There is also an income structure. This product has a fixed term and uncertain income. There are many dual structures, either the lowest income or the highest income.

Hello, friends! Investment and financial management are risky, but the expected return is high ... In the case of inflation, hard-won property can be better protected ... as long as it can be guaranteed ... This is the idea in the hearts of ordinary people! This world is really the best of both worlds! Banks, structured deposits, capital preservation, floating income (even the lowest income) make our wealth managers smile. No wonder they are selling so well now! Who doesn't like to break even and make money ... On the other hand, nothing is perfect in the world, and banks may face some risks in structured financial management!

Dear friends, let's first understand the risks that banks may face when making structured deposits:

1, risk of income fluctuation! Bank structured deposits are a big family, most of which are capital preservation and floating expected returns. Any investment is future-oriented ... naturally there are certain unknown risks. Compared with expected floating income, bank structured deposits and maturity income, there are three possibilities: low, flat and high!

As shown above, this bank, individual and structured deposit is clearly written as "expected maturity rate"! Therefore, the interest rate can only be used as a reference, which is risky!

2, the lowest income can be risky! Some banks' structured deposits have clear guaranteed returns, generally between 1%-3%! In the words of ordinary people, if you can't reach the expected income, you may only get the lowest income, which is also a risk!

As shown above, this is another structured deposit with minimum income guarantee! His expected income, if not reached, will face the risk of taking only the minimum guaranteed income!

3. Other risks! For example, the operational risk of banks, the market risk brought by changes in financial markets, the impact of natural disasters, the risk of premature dissolution of products for some reason, and important policy risks.

Summary: As one of the few financial markets, capital preservation, banking products and structured deposits are generally safe, but they also face various risks with a small probability!

Secondly, through these two products, we can have a deeper understanding of different types of bank structured deposits in order to choose the best one:

First, capital preservation, floating, expected income, bank structured deposits!

Second, capital preservation, minimum income, expected income, bank structured deposits!

Third, non-principal-guaranteed, floating expected income type, bank structured deposits (or wealth management)!

Summary: At present, the common bank structured deposits in the market are mainly guaranteed floating income and guaranteed minimum income! When choosing, you should really understand the terms and consult in detail!

Finally, summarize and analyze:

Bank structured deposits are a huge family. These products have both a stable deposit nature and an enterprising investment attribute! It is a popular good product in the market at present! So far, domestic structured deposits are capital-guaranteed, and the principal is handled in full, which is worthy of being a good partner for Chinese people to invest and manage their finances.

What is a structured deposit? How to identify the risks of "fake structure" in structured deposits to families and individuals?

Obviously, structured deposits are indeed managed as deposits, which are included in the scope of deposit reserve and deposit insurance fund. According to the requirements of the CBRC, capital and provisions should be withdrawn, but what is the difference from ordinary unstructured deposits? Its core is that it introduces financial derivatives (options, futures, etc. ), and through it, a certain proportion of funds will be invested in financial products linked to exchange rates, stocks, commodities and other subject matter, in order to obtain higher income than ordinary deposits.

Here's an example. For example, if a customer buys a structured wealth management product with a one-year term of 654.38+0 million, then a fund transfer pricing needs to be approved here. Let's assume it's 5%. Note that it is not the interest rate finally agreed with the customer, but much higher than the latter.

Then, the bank uses 970,000 yuan to buy risk-free and interest-free bill assets, and the remaining 30,000 yuan is used to buy a certain subject matter (such as stocks) and its call or put options. After one year, the deposit portion will be 970,000 * 1.05, that is, 10 1.85 million, and the 30,000 yuan portion can not be exercised, and the final income is 10 18500. However, if the stock price exceeds the exercise price, the resulting income may be infinite, and of course the final income to users must be fixed.

In fact, structured deposits can't be regarded as a new innovative product. Because of rigid redemption, they are not a profitable business. Unless it is sold according to non-guaranteed capital, many foreign banks used to manage sales according to non-guaranteed capital, which of course caused many customers' complaints. At present, a large number of banks are competing to issue this product. I have to admit that this is definitely closely related to the promulgation of new asset management regulations, and it can even be understood as a way to escape from SGX, and of course it can also be understood as a special means for some small and medium-sized banks to compete for territory. Where is the "fake structure" deposit? What are the risks of buying fake structured deposits?

Since the issuance of bank guaranteed wealth management products was restricted, structured deposits suddenly caught fire. Because of the substitutability of structured deposits and capital preservation financial management, many investors who bought capital preservation financial management products before have been attracted to buy them. As a result, in 20 18, the structured deposits of banks increased by 2.66 trillion yuan, up by 38.27% year-on-year. However, since September last year, the issuance speed of structured deposits has obviously slowed down because the regulatory authorities have found some problems.

On the occasion of the fire of structured deposits, banks of all sizes have launched their own structured deposits, but there are also some "fake structured deposits", including those issued by some unqualified banks and those with product design problems. These structured deposits are called "structure", but they are actually products paid in disguise and have lost their "structure" attributes.

Hello, friends!

Structured deposits issued by banks are actually capital preservation products, and the principal is very safe. The biggest risk of structured deposits is that the final rate of return may be the lowest rate of return expected at first. Let's analyze it.

Generally speaking, structured deposit refers to a financial derivative embedded in ordinary deposit, which is linked to financial or non-financial objects such as interest rate, exchange rate, stock price, commodity price, credit and index, so that depositors can obtain high returns on the basis of taking certain risks.

Structured deposits generally have two advantages and one disadvantage.

One advantage is higher returns.

Generally speaking, the yield of structured deposits is higher than the annual interest rate of bank time deposits in the same period. Therefore, one advantage of structured deposits is high yield.

One advantage is to protect the principal.

Structured deposits are capital preservation. Therefore, there is no need to worry about the principal security of structured deposits.

One disadvantage is poor liquidity.

The liquidity of structured deposits is relatively poor, because structured deposits are not allowed to be withdrawn before maturity. So it can be said that the liquidity of structured deposits is relatively poor.

The biggest risk of structured deposits is that the rate of return cannot reach the expected maximum rate of return. Structured deposits are characterized by embedding a small amount of other high-risk derivatives on the basis of ordinary deposits, thus making it possible for structured deposits to obtain higher yields.

For example, the following table shows the structured deposit products of China Bank, in which the first structured deposit product has a maturity of 35 days and the expected annualized rate of return is 0.35% or 5.25%.

It can be seen that the lowest yield of this kind of products is 0.35% and the highest yield is 5.25%. However, it can be seen that the interest rate difference is very large, and you are not sure whether you can achieve a yield of 5.25% at 100%. Therefore, this is the risk of this product.

There is also a 182-day structured deposit with a yield of 1.56% or 4.46%, which is also a very uncertain product yield.

For other products, it can be said that the yield gap is still relatively small. For example, the annual interest rate of 9 1 day dollar-linked structured products is 1.75% or 1.95%, so the yield gap is relatively small, even the lowest yield is still relatively high.

Therefore, from the actual products of structured deposits, it can be seen that structured products have little risk and are products with guaranteed capital. The biggest risk comes from not reaching the highest expected annualized rate of return.

To sum up, structured deposits can be guaranteed, so the biggest risk of structured deposits is that they cannot achieve the highest expected annualized rate of return.

Thanks for reading!

Structured deposit, as a new asset management regulation, can replace traditional wealth management products, which has both capital preservation and high-yield properties and is widely loved by investors. Banks have expanded the issuance scale of structured deposits. The scale of structured deposits in the country has also shown rapid growth.

In the process of rapid growth, structured deposits actually have some problems:

Everyone's trust in structured deposits stems from its capital preservation property. But in fact, in the structured deposits issued by banks, their risk levels are also pr2 and pr3, which is what people often call non-guaranteed financial management.

The logic of structured deposits is to embed financial derivatives in traditional time deposits. Financial derivatives are mainly linked to the fluctuation of interest rate and exchange rate index, with high risks and high returns. Its business logic is that the stability of the principal and income of traditional deposits determines the guaranteed income of structured deposits, and the income of financial derivatives determines the upper limit of the income of structured deposits. Therefore, whether structured deposits can protect the capital depends on the amount of principal invested by traditional deposits.

At present, most of the structured deposits sold by banks are pr 1, which belongs to capital preservation and financial management, but we should not treat them lightly. We should check the risk rating of structured deposits.

For pr 1 structured deposits, banks generally announce a minimum interest rate and a maximum interest rate. Generally, the lowest interest rate can be guaranteed, but the probability of reaching the highest interest rate is relatively small.

When investors inquire about the interest rate of structured deposits, they cannot take the expected highest interest rate as the final interest rate. Once you do this, you may miss out on financial management with higher returns and lower risks. For example, pr2-level non-guaranteed net wealth management with basic guaranteed income. Another example is a three-year deposit certificate.

The Measures for the Supervision and Administration of Commercial Banks' Wealth Management Business stipulates that banks that issue structured deposits must be qualified to trade financial derivatives. As we all know, investment ability has a great relationship with talent reserve, investment experience and issuance scale.

Although some banks are qualified, it does not mean that they have strong investment ability. If you buy a structured deposit with guaranteed capital in such a bank, the principal will not be lost, but the possibility of obtaining higher income is relatively low. In financial investment, less income means loss, and opportunity cost can be seen everywhere in bank financial management.

Generally speaking, the risk of structured deposits is relatively low. As long as it is a structured deposit with capital preservation, at least it will not lose money. Because structural deposit investment and traditional deposit are partly guaranteed by deposit insurance fund.

After the new asset management regulations, former colleagues of the bank said that the "new" wealth management products launched were more popular than the previous products, and many people queued to buy them because the income was higher than before and the capital was guaranteed. There seems to be no risk.

The so-called new wealth management product is "structured deposit", which is essentially a financial product in which financial derivatives (including but not limited to forwards, swaps, options or futures) are embedded on the basis of absorbing customers' ordinary deposits, and customers' income is linked to interest rates, exchange rates, stock prices, indexes and other targets.

Structured deposit is a kind of "structured wealth management product": it is usually guaranteed capital, but the income depends on the specific market situation and is presented in interval form. Finally, yield to maturity is closely related to the trend of the linked target.

1. Usually the income range is agreed, such as 3 months, and the annualized income is 2.5%-6%.

2. It can be divided into two categories: guaranteed structured deposits and non-guaranteed structured financial management. Capital-guaranteed structured deposits refer to capital preservation, and interest will be linked to derivative income, and interest income will fluctuate. Non-principal-guaranteed structural financial management means that part of the principal is fixed, while the other part of the principal and deposit interest are linked to derivative income, and the income fluctuates.

3 Features: Complex structure. Guaranteed capital, not guaranteed income; However, linked to financial derivatives, many investors do not understand the investment logic, in fact, its income is fluctuating; Moreover, due to the unequal information status, the risk of such products linked to financial derivatives is borne by investors, but they cannot obtain excess returns.

4. The risk of structured deposits is greater than that of ordinary deposits, and the income is less than that of bank financing.

Risk Level: Here is the risk warning of wealth management products of China Merchants Bank official website. The products are divided into five grades: R 1 cautious type, R2 stable type, R3 balanced type, R4 aggressive type and R5 radical type. Investors can choose the corresponding level of products according to their risk tolerance.