How do banks set positions?

Every time the funds in the interbank market change, someone always asks the author, why? Is it allowed or returned this time? Didn't you pay yesterday? When do you get paid? Is this tension paying taxes? Pay financial deposits? Foreign exchange account? Didn't the IPO thaw today? Why are you nervous? When do you open the warehouse? Why do some banks lend and lend? Borrow it again? How is the position of the daily line determined? Why can some banks accept 2A+ pledged debt, some only accept interest rate debt, and some have no restrictions? Why do institutions with poor integrity suddenly become serious during the holidays from month to month, and only accept interest rate bonds as pledges? Or for enterprises, why can't they pay without an appointment?

After reading this series, you will understand everything.

For the liquidity management of banks, many people (including teachers of non-bank institutions such as enterprises, individuals, funds and securities firms) are full of curiosity. "Bank", as the largest main institution type in the bank, its operating principle is a mysterious field and a black box for the bank. For enterprises and individual customers, I don't understand why there is a lot of money to be predicted in advance. The author also mentioned in his article about money that he recorded a large transfer without an appointment. After answering a lot, I thought, why not write it and share it with more people. If we can better understand the characteristics of banking institutions, we will have a more accurate judgment on the liquidity of the interbank market. On the other hand, if you have a wrong understanding and blind spots, you can only passively accept the heavy changes that the market is facing, which is very hard and even affects investment decisions and judgments. Once you master this secret, you can take some initiative in market changes.

I spent three years in the ever-changing and passionate world of the interbank market, and worked at the counter for less than two years before. I still remember the hard work and confused pressure when I entered the Tao. There is no targeted book, no place to establish a systematic market view, and no place to make efforts. So, like everyone else, we can only try to piece together thousands of puzzles into a complete picture.

In fact, not only the small partners of non-bank institutions, but also the brothers and sisters of many banking institutions who are engaged in self-management, treasurer, asset management (wealth management), custody, liquidation, branch, risk control, and assets and liabilities (wealth management planning department) in the financial market may only see their own functions, but for various reasons, it is difficult to see the whole picture. However, due to institutional characteristics and post reasons, all lines are related to some extent. It happens that the skill list is full of curiosity, so I know a little about fur, and another "sharing" attribute urges me to organize it into a relatively complete system, connecting fur into a broken sweater, and I will bring it to you today. Please don't dislike it.

Although I don't have much knowledge and long skills, I also hope to do my best to make the novice traders less confused and more interested, and enter the high-speed growth stage earlier, just like what qualities do an excellent trader need? Cultivation, Cultivation of the Mind, the realm described in Xiu De's Cultivation. I also hope that more experienced teachers will give me more comments and suggestions, improve this series and do something small for this market. At the same time, it also allows enterprises interested in bank liquidation to know more about the bank's liquidation operation mechanism. Someone has to do something, so let the stupid author throw a brick to attract jade! The author's little idea is that I hope this series can be done in the future. The first thing a new trader does when he enters the office is to get the office equipment. The second thing is to be called to the office by the leader and say, Get familiar with the environment first, and then read Wang Chao's series of articles! )

How did the author spend the day before as a participant in the interbank market? In the language of ridicule, we have opened the working fragments of bank treasurer post manager and fund trader for everyone, and this time we will discuss it in depth.

In order to ensure the fluency of writing and the enjoyment of readers, the orientation of this paper lies in the application level, which is an introductory reference level, focusing on inter-bank traders, and at the same time allowing individuals and corporate finance who deal with banks all day to see the internal situation of banks clearly. Try to be concise, understand it after reading it, and use it after understanding it. Nobody gave you an exam anyway. Please don't compare it with the works of teachers in the field of professional analysis in rigor and theory. Please be more tolerant, forgive a younger generation for being imprecise and immature, and help me a lot. Because there are really too many predecessors and talents around me who are better than me, I admire them and it is hard to reach them, so I am very uneasy now. Due to the time, the sources of various articles will not be listed one by one, and those who are interested can help to verify and quote. In addition, there is no absolutely unified method for bank liquidity management, and there are similarities and differences. Scale, bank positioning characteristics (policy, state-owned, joint-stock system, listing, city commercial banks, rural commercial banks), etc. Will bring qualitative change from quantitative change, but the principle is the same.

Finally, the author works for a city commercial bank with a scale of hundreds of billions at present, serving as the post manager of treasurer, doing capital trading and bond trading. In the process of writing this series of articles, I got the help of many good friends in different positions, such as regulatory agencies, state-owned, joint-stock companies, city commercial banks and rural commercial banks, so I don't thank them one by one. Due to the privacy and risk control of institutions, the characteristics of institutions will be deliberately erased, and the situation of various institutions will be consulted, adopted and integrated to achieve neutrality, universality and reference.

Chapter 1: Concepts of Treasurer and Reserve.

Knowing why, the prophet knows why. We need to thoroughly understand some basic concepts first, and then reveal the world puzzle of computing location with armed professionalism! (I definitely don't want to keep your appetite chasing my article ~)

1. What is a bank treasurer?

As the name implies, the treasurer is the person who manages the warehouse, while the bank treasurer is the bank's vault (virtual) housekeeper, who is responsible for operating, managing and balancing the two ends of the balance sheet. All capital inflows (deposits, inter-bank liabilities, inter-bank market repurchase and lending, etc.). ) and all capital outflows (loans, interbank assets, reverse repurchase and lending in the interbank market, etc. ) are unified in the shopkeeper, not one-to-one correspondence, but eventually reach a balance. This is both a balance of quantity and a balance of pricing. Generally, the function of treasurer is placed in the financial planning department or the assets and liabilities department, and some institutions are placed in the financial market department. The treasurer lets the bank know how much it has made and lost, how much it can invest and what it should invest. In the end, the treasurer will not retain any income (in principle, some institutions will obtain the corresponding agency income through the agency of the operating department), but a certain proportion of reserve funds should be retained on the basis of meeting the statutory reserve to ensure the daily payment and liquidation needs of a banking institution. Pricing, managing maturity mismatch, controlling interest rate risk and reflecting business orientation through price.

For the account manager, you pull deposits for the bank and you sell them to the financial supervisor. The shopkeeper thought for a moment and said, Ah, it's a 1 year time deposit,10 billion? Then I'll give you 4.0% a year to buy your deposit, so the account manager turned to the customer and said, you deposit10 billion, and I'll give you 3.5% interest every year! Results Account managers (branches) earn 0.5% * 1 billion = 5 million yuan a year; At this time, the bank's proprietary trader came over and said, I want to buy debt! The shopkeeper thought for a moment and said, ah,10 billion? Then I gave you 4.3% and sold it to you for one year, so the dealer turned around and bought an AAA CP with a term of 1 year and a yield of 4.6%, so the dealer (financial market department) earned 0.3% 1 billion = 3 million yuan. Wait a minute. Didn't you say the treasurer didn't keep the proceeds? What does the middle 0.3% mean? That's because credit bonds occupy risky assets in banks and affect the capital adequacy ratio (capital adequacy ratio is one of the important health indicators of financial statements), which is to burn money in our jargon (this part will be mentioned later). In fact, assets, liabilities and prices are not in one-to-one correspondence. The treasurer is responsible for considering all kinds of risks and quotas in the complex assets and liabilities, so as to quantify the pricing, and finally leave no income for himself, and then let all internal departments make their own money. It boils down to the total amount of money earned by banks. Brothers, the accounts are clear, the management is targeted and convenient.

Here's a concept first. At the beginning of the bank's opening, the bank's own money was only equity and shareholders' money. Later, banks began to pull deposits. The money of individuals, enterprises, institutions, especially financial institutions, can't fall from the sky. In fact, it is in the bank, unless you all put it in the closet in the form of paper money. And there is a bank, the ownership and use right are yours, but the bank also has the right to use, as long as you can take it away when you want to use it. Then the bank issued bonds, subordinated debts, secondary capital debts, etc., made IOUs and took a lot of money (although they were all owed to the buyers). All this money is on the liability side of the bank's balance sheet. Although they are all owed to others (including shareholders), they are all included in the debtor, but banks still have to use them! You can't pay interest for nothing! So when it comes to assets, banks can use these IOUs to lend or allocate other assets, which is also the basis of bank profits. But further, the bank's money is in the central bank. You can understand that the central bank is the bank of the bank, because in this way, the liquidation between banks can be carried out through various liquidation messages flying around. For example, both enterprise B and enterprise A have banks, and enterprise B remitted 654.38 billion+0 billion to enterprise A, which was recorded in a small account. Bank B recorded a decrease of 654.38+0 billion in enterprise B; Bank A records: Enterprise A increased by 654.38+0 billion. And enterprise B (with an account in Bank B) remits money to enterprise A (with an account in Bank A), that is, Bank B remits money to Bank A, and Bank B remits money to Bank A, and the central bank also records it in a small account. Bank B reduced its position by 654.38+0 billion, and Bank A increased its position by 654.38+0 billion. Layers of nesting, the company's money belongs to the bank, and the bank's money actually belongs to the central bank. The central bank is the largest, and everything is in the hands of the central bank (please forgive me if the description is biased). This is somewhat similar to the bookkeeping of China Bond and Shanghai Clearing House when buying and selling bonds.

Speaking of which, it's getting closer to the original appearance! In other words, the bank owes a lot of debts and takes a lot of money, and then allocates loans, bonds and other liabilities for asset allocation, but it also needs to guarantee those creditors (institutions and people who deposit with them, the food and clothing parents of our bank employees), and your money is still your money. Just let me know in advance that you want to use it at any time! Therefore, parents are relieved that it will not affect the use of money when I should use it! If you are at ease, you won't take it all. You should use it when you need it. You usually keep it. So in real life, for example, a bank has 654.38+00 billion deposits, but on a specific day, there are not so many people who really need money, maybe only 654.38+00 billion, and at the same time, other institutions and people have also deposited 5 billion or 654.38+05 billion on that day, which is hard to say. In other words, you don't have to leave so much money in the bank account, maybe only 654.38+000 billion, as long as you ensure that there is enough money in the account that day. For the unit that uses money, the bank's money is always sufficient! If there is a shortage on that day (receipt

Tell me more about it. Let's give a most vivid example. For example, there is 654.38+0 billion in bank A's account, and the central bank only requires that 654.38+0 billion (legal reserve) must be left at night. At this time, enterprise B (with an account in Bank B) remitted 654.38 billion yuan to enterprise A (with an account in Bank A). Ding Dong! At this time, the bank account of A increased by 654.38+billion, and then the deposit of enterprise A increased by 654.38+billion when bookkeeping, and the bank still owed enterprise A 1 billion. Anyway, enterprise A doesn't need it today, and it's a pity to keep it, so bank A ran to the market and lent the 65.438 billion yuan to other institutions for one day (overnight). Bank B was short of 654.38+0 billion, so it went to the market and borrowed this 654.38+0 billion.

So for the small partners in the interbank market, you must know the importance of the bank treasurer, because the funds are exactly what the treasurer sells to the bank traders (or buys from them)! Some institutions have separate treasurers, which are managed independently, while others are put together, which will be discussed later.

In short, every penny in and out of the bank is an instruction from the treasurer to the bank's fund traders:

Morning: overnight loan10 billion! 1500 million 7 days! 500 million 14 days!

Afternoon: 2 billion 2 1 day! 1 billion 1 month!

Oh, in the interbank market, the treasurer does the transaction, pays or borrows money!

Lending and liquidation of enterprises are also authorized by the shopkeeper! Enterprises keep asking, I made a payment through online banking, when will it arrive? Ask the shopkeeper! Treasurer: Parents, please be calm. We will make proper arrangements and settle the account as soon as possible! )

Bottom line: The treasurer is the money manager of the bank and is responsible for allocating liabilities and assets (types, interest rates, maturities, risks, etc.). ) pricing under more reasonable guidance. This includes liabilities and assets (repurchase, bonds, etc.). ) In the interbank market.

So teenagers, do you want to know what the treasurer did in the dark room?

Then don't close this article to watch jokes or chat with your sister WeChat, and continue to read it carefully!

2. What is the statutory reserve?

The full name of statutory reserve is statutory deposit reserve, which means that commercial banks must keep the central bank's money at the end of the day according to their own deposit amount according to the law. Among them, large financial institutions pay more, while small and medium-sized financial institutions pay less. The directional reduction of the deposit reserve ratio issued by 14 has made some special institutions (prudent, supporting agriculture, rural areas and farmers and supporting small and medium-sized enterprises) pay less. In short, it is differentiated management, and a proportion is set according to regulatory needs. Of course, in principle, the same type of mechanism is the same.

What is the function of statutory reserve? At the beginning of the world (China), the central bank was established. Because of the need of clearing and trading, the central bank printed a bunch of banknotes, called [base currency], also called monetary base, strong currency, initial currency, and also called high-energy currency. As soon as you hear the name, you know that this money is particularly pure, particularly true and particularly valuable. And these "real money" can be derived. How can we do that?

Let's give a simple example. On the premise of not paying the statutory requirements (and not considering the limit of loan-to-deposit ratio, loan amount, risky assets, etc.), for example, there is only one bank called Bank A and only one enterprise called Enterprise A in China. Enterprise A has 654.38+0 billion funds deposited in Bank A. Then Bank A has 654.38+0 billion deposits (liabilities). Since there is no need for deposit reserve, Bank A can use all the 654.38 billion deposits as loans. For example, Bank A lent 654.38 billion yuan to Enterprise A, and there was 20 billion yuan in the account of the enterprise, but these funds would not fly to the sky, and actually still existed in Bank A. So the loan entered the banking system and became derivative deposits, and the bank had 20 billion deposits, an increase of 654.38 billion. Therefore, Bank A continued to absorb new deposits of 654.38+0 billion yuan, and continued to lend to Enterprise A, which added 654.38+0 billion yuan. ...

A little dizzy, huh? Then let's talk about it in detail and add some interaction (forgive the author's verbosity, because since I wrote it, I hope you understand it completely, and if you already understand it, you can skip it). If there are two banks in China, Bank A and Bank B, then there are two enterprises, Enterprise A (with an account in Bank A) and Enterprise B (with an account in Bank B). Enterprise A is a shipping company and enterprise B is a shipyard. The two companies have deposits of 654.38 billion yuan respectively, which are deposited in Bank A and Bank B respectively. Shipping company A entrusts shipyard B to build a ship for itself, with a cost of 654.38+0 billion. However, Ship Company A didn't want to use its own money to pay the shipping expenses, because other places of daily operation also needed to spend money, so it chose to borrow money from Bank A. Bank A had 654.38+billion deposits before (Ship Company A kept them there all the time), so it was all used to distribute the deposits of Ship Company A to Shipyard B, and Shipyard B got 654.38+billion glistening money. It doesn't care whether shipping company A borrowed money, issued bonds or shareholders gave it. From the point of view of shipyard B, it just got 65.438+0 billion. So it turned to Bank B and said, Hey, here you are. Bank B doesn't care whether it comes from the shipyard selling ships or socks, let alone who paid the money to shipyard B, and let alone whether the payer's source of funds is a loan. From the point of view of Bank B, it just got an extra 654.38 billion yuan. So Bank B has always had 2 billion deposits (all deposited by Shipyard B), so Bank B lent 2 billion loans to Shipyard B, and Shipyard B paid 2 billion to Shipyard A to pay the freight for transporting iron ore from distant mainland in the future 10, so Shipyard A increased 2 billion funds. With Bank A, it has increased 2 billion deposits and can issue new ones.

Derivative derivative, endless! There is so much money in the market that the central bank can't manage it at all. Great! So insecure ...

Therefore, from this perspective, it is necessary to set up a statutory reserve.

The real base currency = cash+deposit reserve.

If the statutory reserve ratio is 18% and the excess reserve ratio is 2% (paid on a daily basis), then the actual daily reserve ratio of the bank is 20% (statutory reserve ratio+excess reserve ratio), so the maximum monetary amount obtained in extreme cases is: base monetary amount /20% = base monetary amount *5, please deduce it yourself in the calculation process. Deposit reserve is the total amount of money * deposit reserve ratio = base currency * 5 * 20% = base currency. Add back the cash part, and we will understand the meaning of the above formula of the total amount of basic money.

So everyone knows why RRR cutting is so powerful! Because every time the statutory reserve ratio decreases by 1%, the position released is not the amount of base currency * 1%, but the denominator minus 1%! For example, the amount of base money is10000000000000, and the legal reserve ratio was 20% before, and now it is 19%, so the change value of the maximum amount of derivative money is:100000000000 /20% = 526.3 trillion -500. If you say RRR is lowered, should China open 40bp at 10? Should it skyrocket? The lower the bond interest rate, the higher the bond price. )

Let's describe the statutory reserve in common language.

If we think of the statutory reserve account as a big, thick test tube, the capital position is water, and the amount of statutory reserve needs to be marked with a red line on the test tube, and the large-sum system payment is closed at 17:00 every day, PBOC will instantly reduce the part below the red line to absolute 0 degrees, freeze into ice, and the part above the red line is still water, which is called excess reserve. At nine o'clock every morning, the large payment system is turned on, and the temperature below the red line recovers and becomes water again. This is why in the capital market, many institutions are willing to give money to the directly affiliated institutions, and only those institutions with statutory reserve accounts can be called directly affiliated institutions (reserve accounts are directly connected with the capital accounts of China Bond and supernatant, please pay attention here! Not all banks are directly affiliated institutions, but some small rural commercial banks and small cooperatives are not, and they are linked to the reserve accounts of large rural commercial banks and large provincial cooperatives. At 9 o'clock in the morning, the part below the red line of the directly affiliated institution snapped and melted into water again. There is a lot of money, so you can repay it automatically on time as soon as possible, and it will never delay the payer's business.

The reserve account can be below the red mark (legal reserve gold line) during the day, but not below 0. After all, it must be above the red line. One thousand at five o'clock in the afternoon, the central bank slammed the part below the red line and found that there was not enough water, and you were dead. How serious is it? The central bank will severely punish you, ask you to rectify, stop your lending and stop your various business qualifications. Anyway, it's terrible. Relevant leaders, traders and other employees will also be dismissed. It is related to the operation of banks and personal career prospects, and it is no exaggeration to call it the line of life and death!

Bottom line: the statutory reserve is the funds that the central bank requires banks to keep in the statutory reserve account at the end of each day. The significance of statutory reserve is to control the investment intention of deposit institutions.

3. What is the excess reserve? What is supply?

Excess reserve, as its name implies, is the money that exceeds the legal reserve. As we mentioned before, the function of this part of the money is that customers can use it at any time when they need it (of course, parents need to make an appointment for large sums, and this little effort will be of great help to bank liquidity management! A bank's deposits range from tens of billions to hundreds of trillions. Here is the money. Think about how much money the sky in China will float around every day! The picture is so beautiful that I dare not think about it. Even if the large payment system is closed at the end of the day, there will still be many new-age teenagers who master high technology and love their new life at home to buy socks (although the large payment system is closed, other systems will be discussed later). So leave the money in the account! The statutory reserve, which is required by the People's Bank of China, will be frozen, not for you to buy socks for Alipay customers! This part of the money is very particular: leaving less is not enough to meet the liquidity needs of customers, no; If you keep too much, the extra capital cost will make you lose tens of millions or even hundreds of millions or billions of profits a year. Before, we knew that the central bank was a bank. In fact, a bank has many accounts in the central bank (which will be introduced later), and the most important one is the statutory reserve account, which is also the life and death line of a bank. PBOC only evaluates whether there is enough money in this account. A bank has only one statutory reserve account (opened by the head office in the People's Bank where the head office is located).

For example, the statutory reserve of a bank is 10 billion, so if it has 1 10 billion in its account at night, is the excess reserve 10 billion? Don't! Please continue reading.

Just now, the story talked about the statutory reserve account. After the large test tube and the part below the red line are frozen into popsicles, the water on the popsicles is called excess reserve. As I said just now, it is wrong to directly say that this part is an excess reserve. Why? Because there are many relatively thin test tubes around this big thick test tube!

In fact, in order to meet the diversity of clearing needs of financial institutions, the central bank has gradually established some clearing systems outside the main channels in the process of layout, thus making our life better (no longer afraid of buying socks in the middle of the night 12! )。 Including (but not limited to) the same city system, financial system, etc.

The main statutory reserve account is an account opened by the headquarters in a local bank. But at the branch level, these other systems are needed. You should have heard about the second generation system upgrade recently. These systems have their own characteristics, which will be introduced later.

These accounts are the accounts opened by the branch in the central branch of the People's Bank of China where the branch is located, and they are also reserve accounts. However, the People's Bank of China will not assess their balances, and the balances in them are all excess reserves. We can also call it a reserve account.

Then we now have a complete and clear concept: a bank (at least a bank with branches), an account opened in the People's Bank of China is like the famous Long March 3 bundled rocket in China, with many small thin test tubes tied around a big thick test tube. It is full of water (money, positions), in which the main test tube is a legal reserve account and the small test tube is a branch reserve account.

Among them, the daily final water volume of the main test tube is the only content of the central bank's assessment of banks. Under normal circumstances, the large payment system will be closed at 17:00, and then the water below the red line (legal reserve) of the main test tube will freeze and become ice cubes (legal reserve); The unfrozen part of the ice is part of the excess reserve. It will be unfrozen at 9: 00 in the morning, and the T+ 1 transaction made the day before, or the expired transaction, will be automatically cleared, because you have a whole test tube of money to use. It doesn't matter if you are below the red line during the day, until 17:00. During the freezing period, there is no conventional remedy in theory. ...

Other test tubes (branch reserve accounts) are connected with other payment systems, such as the same city system, Guangdong special EFT system and other special financial systems (the payment system will be emphasized in the next chapter). Small test tubes are clean and not marked with red lines, and will not freeze after 17:00 at night. As long as there is a little water, it won't dry up.

Bottom line: the excess reserve is the water above the red line of the main test tube+the water in the small test tube, which is the excess reserve! The reserve fund is the money ready to settle the payment!

Although this metaphor looks unprofessional at all, I think you understand it! )

There is a tricky thing here, that is, the central bank only considers whether there is enough water frozen below the red line of the main test tube, and will not care about other test tubes. It may happen that 100ml water needs to be frozen. The main test tube has only 90ml of water, and each of the other 10 small test tubes has 10ml of water. Isn't that 190ml? Sorry, it's no use. The main test tube will still explode. Game over ~ ~

Well, the readers here must be tired too. See you next time!

Next time, I will talk about the liquidation characteristics and principles of each system, as well as the historical relationship with China Debt Board and Shanghai Clearing House. Don't underestimate, these liquidation characteristics will affect the bank's holding time and trading behavior, and will also affect the transactions of funds and brokers ... all non-bank institutions, because the funds of non-bank institutions need to be entrusted to banks. Key words: payment system features, information, DVP and non-DVP stories, night clearing and emergency business.