Analysis On The Issue Of Innovative Deposit Products

With the development of economy and society, ordinary deposit products have been difficult to meet the demand of investors, commercial banks began to invention innovative deposit product in order to obtain funds to keep the debt sources and be more competitive in the horizontal competition. One of the more representative of innovative deposit products is certificates of deposit.On June 2,2015,, the people's Bank of China issued interim measures for the CDs management, which marks the start of the issuance of CDs in china. On June 15, Industry and Commercial Bank of China, Agricultural Bank of China, Bank of China, Construction Bank of China, Bank of Communications, CITIC Industrial Bank, China Merchants Bank, Shanghai Pudong Development Bank, Industrial Bank Co., Ltd, as core members of the market interest rate pricing self-discipline mechanism issued of the first large certificates of deposit. Subsequently on July 30, the people's Bank of China issued license list to expand, in addition to the above nine Banks, China Zheshang Bank Co., Ltd., PingAn Bank, China Minsheng Banking Co. Ltd., Hengfeng Bank Co. Ltd. launched CDs. The certificates of deposite issued by these banks are not completely the same, its product sales object, launch time, period, interest rates are slightly difference. Why do these banks face the same kind of deposit instruments and have different reflection? This paper will take the certificates of deposit issued by commercial banks as examples, analysis of two angles to explore these issues from the financial analysis and empirical answer. The analysis for the characteristics and development of bank savings and bank financial products will have great reference value.At present CDs issued in related research is still blank in our country, this paper to issue bank financial data as the breakthrough point for the research, found the bank needs more products like certificates of deposit which is innovative and safety. Taking into account the motives, the reasons of bank issued CDs are mainly divided into three kinds:First reason is to maintain its own advantages. Like the China Merchants Bank, Shanghai Pudong Development Bank, the profit and growth are relatively good and development orientation are very focused on innovation. In addition, there are also like Industrial Bank is starting from their own positioning, focusing on the issue of company CDs. Second reason is to actively seek transformation. Such as Agricultural Bank of China, its own financial problems are more serious, the positive innovation of CDs can be regarded as a transformation development. Third reason is the issue of relative slack. The most typical is ICBC, its indicators have maintained good, its CDs is the lack of attention and is also one of the earliest to suspend the issuance. For differences in the choice of issue time, thiss paper select 53 shares of banks and city commercial banks as sample banks to perform survival analysis, which 53 sample banks have 32 in observation period issued certificates of deposit, we find the rate of return on capital, asset size and debt growth rate for banks is more significant to choose the time to issue certificates of deposit. So we find the answer to choose the time of issuing certificates of deposit by the consideration of factors for the medium sized commercial banks. At the end of this paper, we discussed the reasons for the popularity of CDs at present, the main reason is the general pricing issues and the absence of transfer ways. In order to ensure the good development of this new type of deposit products, we should pay attention to these two aspects in the future.