China’s ‘fake payoffs’ remain an issue

The average monthly structured deposit balance in China has fallen by 37.7% to CNY6.15 trillion (US$967.5 billion) in 2021 year-on-year (YoY), according to the central bank People’s Bank of China. For medium-and-small sized state-owned banks, which include the main issuers of structured deposits - joint-equity banks (股份制银行), the balance dropped by 40.8% to CNY3.68 trillion YoY. The shrinking market share of structured deposits is directly related to the landmark regulatory framework rele