Finance Association, November 14 (Reporter Peng Kefeng) As a powerful tool to absorb funds from idle accounts of ordinary customers, banks in the past had many “coin money management” products that focused on “quick redemption and same-day payment”, but recently they have continued to usher in new changes.

On the morning of November 14, Minsheng Bank posted an article on its official website stating that it will suspend the “real-time transfer out” service of the Direct Selling Bank Ruyibao business on December 19. Users can choose “normal transfer” to process a single redemption business for the products they hold. The redemption funds will be credited on the T+1 securities trading day.

A number of industry insiders said that the quick redemption service essentially means that the bank advances funds to the customer in advance, and the fund products purchased by it cannot arrive on the same day after redemption. A retail business person at a stock bank said earlier when receiving Fortune from the Financial Services Association reporter that banks provide this kind of service, which is actually equivalent to bank advances to meet customer liquidity requirements. But now bank interest spreads are under pressure, and careful calculations are needed in many areas.

A banking analyst at a brokerage firm also told the Financial Association reporter that the “quick redemption” service for various financial products is a major test for banks' liquidity management. Once banks experience a wave of centralized rapid redemptions in the short term, banks have to choose to press the pause button. This was the case with Societe Generale and Ping An Bank before. Banks need to make careful decisions on how to achieve a balance between increasing scale and managing risk.

Minsheng Bank suspends “quick redemption” service for another wealth management product

This morning, Minsheng Bank issued an important announcement on suspending the real-time transfer service of Minsheng Direct Selling Bank's Ruyibao business.

In the announcement, Minsheng Bank stated that it will suspend the “real-time transfer out” service of the Direct Selling Bank Ruyibao business on December 19, 2024 in accordance with policy adjustments. At that time, transactions such as customer inquiries about the products they hold, normal transfers, and business cancellations will not be affected. After this service is suspended, customers log in to “My Ruyibao” and enter the product holding page related to this business, and can select “Normal Transfer Out” to process a single redemption business for the products they hold.

Minsheng Bank also stated that according to the securities trading day rules, after initiating an “ordinary transfer” application, the redemption funds will be credited on the T+1 securities trading day. The details are subject to the product fund contract, recruitment brochures, and the latest rules for Ruyibao's business disclosure. In addition, using the relevant product redemption amount in Ruyibao to pay for other products, including but not limited to the following scenarios: fund transfer, payment, funds, financial management, livelihood funds, etc. (subject to the corresponding scenario transaction rules), will not support the “real-time transfer” service linked to the corresponding product, that is, the amount available in the account no longer includes the corresponding product redemption funds transferred in real time from the usable share of the product in Ruyibao.

A Financial Services Association reporter's inquiry revealed that according to past public reports, “Ruyibao” is a settlement service product where China Minsheng Bank's direct sales bank cooperates with fund companies to complete automatic subscription and redemption of monetary funds for clients' electronic account balance.

It is worth noting that in terms of suspending rapid redemptions of wealth management products, Minsheng Bank has recently carried out similar operations.

On July 22, the official website of Minsheng Bank published an article stating that starting from July 26, 2024, the bank will completely stop the “Xinyingbao” service and will no longer support “Xinyingbao” functions such as quick redemption and automatic redemption. However, the cessation of the “Xinyingbao” service will not affect the customer's fund product holdings, subscription, and redemption. After the “Xinyingbao” service is discontinued, customers can handle position inquiries, subscription and general redemption services for lower-level monetary fund products held by customers through the “Xinyingbao” service at the counter, online banking or mobile banking fund area. According to the rules of the stock trading day, after initiating an “ordinary redemption” application, the redemption funds will be credited on the T+1 securities trading day.

Recently, a number of banks have adjusted quick redemption services

A Financial Services Association reporter's inquiry revealed that in addition to Minsheng Bank, other large commercial banks have also recently adjusted their quick redemption services for coin money management. However, some actions are temporary.

For example, on the morning of September 20, the Bank of Communications published an article on its official website stating that the service agreement for the two coin wealth management products was adjusted. The core was to adjust the maximum amount for quick daily transfers (quick redemptions) to 0.01 million yuan.

On September 30, Industrial Bank issued an announcement stating that according to the relevant provisions of the “Quick Redemption Business Service Agreement for Cash Management Wealth Management Products”, the bank plans to suspend the provision of rapid redemption services for Tiantianli business, Tiantianbao business and cash management products from September 30, as the total amount of quick redemption applications exceeds the total rapid redemption limit set by the bank, and is expected to return to normal at 0:00 on October 1, 2024 at the latest.

On October 8, Ping An Bank issued an announcement stating that for Ping An Finance's cash management wealth management products, the total amount of quick redemption applications for customers has exceeded the limit, and the rapid redemption and consumer payment services for the same day's Flexibao business, Tiantian Growth C series, and other cash management wealth management products under Ping An Finance's other cash management products will be suspended.

In addition, China Merchants Bank also recently updated the rules for its “Chaoying No. 2” product. According to the Chaoying 2 transaction rules instructions updated on the China Merchants Bank app on November 6, “The quick redemption service is an illegal obligation. The quick redemption service has conditions and can be suspended according to the agreement. If for any reason it is impossible to continue to provide rapid redemption services for the CFD products sold on behalf of them (note: there are other reasons), the agency has the right to suspend or terminate the business, and the customer has no objection to this.”