At this juncture, we are faced with the problem of over-issuance of money.
According to data released by the central bank, as of the end of November 2023, the broad money (M2) balance has reached a staggering 2912 trillion yuan.
This figure is more than double that of 2015, more than four times that of 2010, and more than sixfold since 2008, the year of the over-issuance of money.
However, despite such a large amount of money, we find that most people do not really feel the economic boom. On the contrary, their wage growth has not kept pace with the rate of money over-issuance.
Over the past 15 years, many people's wages have not only not been **, but have even been declining.
Why is this so?In fact, the over-issued currency is not directly issued to everyone. It needs to enter society through the loan channel of financial institutions such as banks.
However, the current economic situation is not optimistic, and many people are afraid to take out loans. They are more concerned with how to cut back on spending and lower consumption levels in response to the increasingly difficult economic situation.
Take, for example, the continued precipitous decline in the number of new generations, apparently due to the fact that people are even thinking about reducing the number of future generations in order to save money.
For a country with a long history and a high value for the concept of succession, this situation undoubtedly shows the seriousness of the economic situation.
On the one hand, there is a large amount of over-issuance of money, and on the other hand, there is a continuous shrinking demand. The banking institutions caught in between are in a particularly difficult position.
They are under pressure to empty a large amount of money in the financial system, and the interest they need to pay is increasing. At the same time, due to sluggish demand, it is difficult to release loans, and the pressure on banks is naturally difficult to alleviate.
In addition, the rapid growth of non-performing loans (NPLs) has made matters worse for banks. According to the data of the State Administration of Financial Regulation, in the first half of 2023, the net interest margin of China's commercial banks fell to 174%, 17 basis points lower than the end of 2022 and 34 basis points lower than the end of 2021. These numbers are enough to give a sense of the enormous pressure on banks. Therefore, it is not difficult to understand why banks will fight the "** war" of consumer loans at the end of the year.
In order to be able to "stuff" money at you, banks are pulling out all their might. This situation is a serious challenge for banks, and for us ordinary people, it also means that our economic life will face more uncertainty.
According to the report of "China Economic Net", the current minimum interest rate of consumer loans of head banks has generally dropped to below 4%, but this is nothing at all, "* It is pointed out that some small and medium-sized banks are issuing coupons, discount coupons and other activities to lower the interest rate, for example, a bank recently launched an activity, and new customers have the opportunity to enjoy 11% p.a. interest rate coupon.
Although this kind of coupon grabbing activity is more like a gimmick for banks to attract customers, and the probability of actually being able to "win the lottery" is very small, there are many banks on the market that can achieve a 3% consumer loan interest rate.
Correspondingly, the "war" of collecting deposits at the end of each year is very deserted, and there is generally no demand for deposits, and the banking business has changed from "seeking deposits" to "seeking loans".
Now, not to mention depositing as a gift, it is very difficult to find a product with a satisfactory interest rate. It is understood that in previous years, at the end of the year, there will be a rise in deposit interest rates, deposits to give New Year's goods and other preferential activities, all disappeared this year, and even large certificates of deposit and special deposit products, which are used as a sharp weapon for savings, are difficult to find.
Why should you choose a consumer loan?
Because from the bank's point of view, consumer loans seem to be the only breakthrough.
It is more reliable than personal housing loans and investment and business loans, and at least there is a certain demand, even if it is not a lot in reality. All in all, while the current pressure is mainly on the banking institutions, the situation is not something that the banks can determine and change.
Banks are uncomfortable, but are they the only ones caught in the middle?
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