LDR "red line" officially lifted as of next month, but that doesn't mean the

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Amendments to the law on commercial banks, are asking for deposits and the highest in the banking industry in recent years than the index delete.

Adopted by the national people's Congress on August 29 a vote on amending the People's Republic of China commercial bank law (draft), starting from October 1, 2015, deletion has been implemented for 20 years does not exceed 75% of the loan index, and adjust the loan by statutory and regulatory indicators for monitoring indicators of liquidity risk.

The so-called loan, a bank loan and deposit balances. LDR 75%, means the Bank absorbed 100 million Yuan deposit, can lend no more than 75 million Yuan.

Loan indicators monitored by the supervision into, will lift its curbs on bank head, mitigation banking arm put pressure. Liabilities-side lower deposit costs, good Bank medium and long term development, so as to further enhance the ability of banks ' asset allocation.

Interface journalists access to semi-annual report found that State-owned banks such as China Construction Bank, Bank, Everbright, China Merchants Bank, joint-stock banks and city commercial bank's loan had been close to the red line.

As of June 30, the Bank loan of up to 74.16%, Bank of China, Bank of 72.83% and 72.09%, respectively. Joint-stock Bank, China Everbright Bank and foreign currency loan for 72.3%, China Merchants Bank loan 71.62%; China CITIC Bank is 71.14%. Shanghai Pudong Development Bank 2014 total foreign currency deposits and loans at the end of 74.33%, 2014, the average loan is 72.26%.

Wang Hongzhang, Chairman of China Construction Bank on the Bank's results announcement to explain the Bank's loan is higher than say, CCB to around the country since the second half of this year and last strategy, key enterprises, major projects, such as "along the way" support loan structure is relatively large. Deposits this year because of the influence of interest rate, deposit growth and also made some readjustment in the past.

Data released by the Central Bank showed that loans by July 2015 financial institutions 90 trillion yuan, 134 trillion yuan deposit balance, loan of about 67%. "LDR after deregulation, if long term loan rose to 75%, as the industry save 270 billion yuan in interest payments, is expected to enhance the industry's net profit of about three, future development of good banking. , "Huatai securities analyst Luo Yi thought.

Luo Yi against long-term assumptions. Cancel the loan, in theory banks can loan funds increased, but on the one hand, due to the downward pressure, bad loan rate surge does not necessarily lead to increased bank credit delivery. "From a business perspective, in particular the recent downward pressure, on the loan issue, we also very seriously, to ensure that regional and systemic liquidity risks. "Wang Hongzhang said at a presentation ceremony.

A four interface told journalists the Department of assets and liabilities, and cancelled the loan lending after the index funds are not restricted, can achieve savings 100% out loans, of course, this is extreme. Actual banks also have to consider the risks, taking into account factors such as liquidity loans. Overall effect is neutral, the bank balance management level and duration of funding arrangements for higher.

"The loan after the abolition, while sources of banks ' liabilities would be more diversified, banks do not have to, as in the past, regardless of cost to cost and can absorb low-cost deposits to reduce debt costs. "Lian ping, Chief Economist of Bank of communications to reporters of an interface, it also helps to lower the loan interest rate, so as to bring down the cost of financing the real economy.

Lianping believes that bank credit easing in the second half, but the credit will not be much change, because there will be management of credit related tools. LDR as a monitoring indicators continue to binding, long-term loan is too high, then the reaction of liquidity problems, banks still need to manage the liability structure.

The other hand, several analysts to reporters of an interface, cancel Bank loan the short term profitability and credit, capacity-limited contributions. Reason is that short term restricted core factors of commercial bank lending is not the loan instead of weak effective demand for credit.

Data published in the first half, the national commercial bank loan data for an average of 66%, 75% the regulatory limit distance still nearly 10 points. DBS Bank Chen Shujin told interface journalists, "loan does not depend on the loan, city rural commercial bank credit management firm restrictions on the big firms, because the economic situation is poor, not willing to lend to riskier enterprises; and low risk business, and not so strong loan demand. "

However, the long run dependence on bank deposits will be reduced, through multiple channels such as debt financing, the banks will be positive.

Ma Kun, China Banking Analyst believes that medium and long term would help to change bank "to keep credit" business strategies, strategic properties to the core resources of the deposits as commercial banks disappeared. At any time and to of, is commercial banks for meet loan than assessment and was forced to for of high card Range Rover storage, and credit times pledge Hou again loan, series twisted of, and non-market of moves completely was eradication, this both will sharply ease Bank of liabilities cost pressure, elimination season points whole bank system of pulse sex funds cost disturbance, also on social overall financing cost has significantly of ease role (for human big deposits scale and for of credit times pledge Hou again loan, behavior is will significantly upgrade enterprise financing cost of).

Ma Kun Peng believes that future banking business strategy from the current "to keep credit" to "asset determines liabilities", and there are no matching assets rather than liabilities. Full aperture and liquidity management of liability cost management will replace the hold storage capacity, became one of the core competitiveness of commercial banks under the new normal.

China Banking Regulatory Commission Shang Fulin, the Chairman pointed out that the LDR regulatory constraints at the time commercial bank lending to expand too rapidly, preventing and controlling liquidity risk has played an active role. But with the development of economy, finance, loan supervision has not adapted to current assets and liabilities of commercial banks diversified innovation and business development needs. Loan supervision index of commercial banks management have certain negative orientation. "To keep credit" loan supervision, too much attention to in the management of commercial banks deposit assessment, in order to meet the regulatory requirement violation "deposits", month-end, quarter-end deposits "red point" problems occur in some commercial banks moving assets to outside the table, push up financing costs to a certain extent, lead to new risks.

He introduced, in order to strengthen the real economy, in particular credit support to small and micro enterprises and agriculture, the CBRC has four adjustment Bank loan calculating, deposit and loan supervision within a legal framework to optimize, but room for further adjustment in the future more and more limited. Meanwhile, loan regulation also affects the development of business innovation and differentiation. LDR "red line" officially lifted as of next month, but that doesn't mean the loan volume

LDR abdication of regulatory indicators, will herald the end of the quarter, financial products revenues peak has weakened. Silver rates Yin Yanmin, Director of financial research center told the media that, LDR regulatory indicators after the abolition of Bank in the end node and the end of time pressure will decrease the demand for funds, banks use short-term high-yield financial products arm storage will be inhibited.

Pu yi of wealth data show that average yields last week of banking products is 4.6%, this figure is 5.14% down 0.54% in January this year, and decline to 10%. Loan appraisal after the abolition of, the expected rate of return of short-term financial products are impacted, and stable funding of long-term financial products remained the Bank valued, investors in the liquidity conditions permitting, to consider medium-and long-term financial products as much as possible.