Wealth management, local small and medium-sized banks
On June 20, according to media reports, the regulatory authorities recently reminded banks that have not established wealth management subsidiaries of the risks of their wealth management business, requiring relevant urban commercial banks and rural commercial banks in some provinces to clean up all the existing wealth management businesses by the end of 2026.
From the perspective of business scale and structure, it is expected that about 3.2 trillion wealth management products of local small and medium-sized banks that have not established wealth management subsidiaries may be affected. As of May 2024, the asset management department of urban commercial banks and the asset management department of rural financial institutions managed 2.23 trillion yuan and 0.99 trillion yuan respectively. Among the related wealth management products, fixed income products account for about 86%. The term structure of the above-mentioned fixed income products is relatively long, with the highest proportion of 6 months to 1 year (inclusive) and 1 year to 3 years (inclusive), accounting for 28.06% and 22.56% respectively.
From the perspective of institutional response, small and medium-sized banks in the leading local areas with a large scale of individual wealth management and strong support from local governments may accelerate the application for wealth management company licenses, but the business gap of small and medium-sized banks in most places will be mainly undertaken by the agency business. (1) As of the end of May 2024, among the local small and medium-sized banks with a wealth management scale of more than 40 billion yuan, the wealth management scale of 6 small and medium-sized banks in Beijing, Sichuan, Guangxi, Guangdong, Chongqing and other regions has expanded significantly compared with the end of 2022, and there may be opportunities to obtain wealth management company licenses in the future; (2) Most local small and medium-sized banks should face up to the industry trend of shifting from "self-production and self-sales" to "consignment sales", and can not only cooperate with wealth management companies in various aspects. In addition, it can make up for the potential loss of income through the development of the consignment business, and even improve customer stickiness, so as to absorb more low-cost customer wealth management settlement liabilities.
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Tang Hao
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