1. Application of principal: The principal of structured deposits is flexibly used by the bank's self-operated funds for the same purpose as general deposits. The principal of wealth management products is invested by the asset management department according to the entrustment of customers, and the investment direction is also agreed in advance in the product specification.
2. Account management: structured deposit funds can be inquired in customer deposit accounts at any time, which is consistent with general deposits. The wealth management funds are not reflected in the customer's deposit account, and only the entrustment contract can be queried.
3. In terms of principal accounting: Yinfa No.2008369 stipulates that banks should add "structured deposits" statistical indicators, and gives the definition of structured deposits "refers to deposit products embedded with derivatives or income-linked stock indexes, exchange rates and other indexes." The Bank conducts accounting according to regulatory requirements. And reported to the central bank, according to the general deposit to pay the deposit reserve, included in the assessment of loan-to-deposit ratio.
4. In terms of income accounting: the customer income of structured deposits of the Bank is reflected in the form of interest, and is accounted for under the subject of "interest expense". The income payable by wealth management products to customers is included in the corresponding liabilities.
(Response time: April 2022 1. Please refer to the latest business changes announced by China Merchants Bank in official website. )