CCB's off-balance-sheet liabilities only 7 pc
CCB , China's second-largest bank by market value, had 824 billion yuan ($132.19 billion) in WMPs outstanding by the end of the third quarter, the company told Reuters in response to written questions.
That figure compares with the bank's 12.3 trillion yuan in total liabilities, of which 11.1 trillion are customer deposits.
The relatively small amount of wealth management products suggests that the explosive rise of WMPs - which are attractive to customers because they offer yields higher than traditional bank deposits - have so far not significantly cannibalized the traditional deposit base, at least for some large banks.
CCB is different. They have been very conservative on wealth management products, said Dorris Chen, head of China research at BNP Paribas in Shanghai.
WMPs are not subject to the Chinese government's mandatory cap on deposit interest rates because returns - and in some cases, principal - is not guaranteed. But analysts say Chinese savers widely perceive the products as carrying an implicit government guarantee.
CCB also said that 80 percent of these products are invested in the bond market and other portion in interbank deposits. That should also allay fears that a large portion of WMPs are invested in risky, illiquid assets like high-interest loans to real estate developers.
While CCB's low ratio will come as
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