China bans bank from luring depositors with gifts
The guidance came in the wake of a promotion by Ping An Bank Co, which has been offering Labubu collectibles in multiple cities for new depositors who can park in 50,000 yuan for three months. — Bloomberg
BEIJING: A Chinese lender's stunt to woo depositors with gifts including the wildly popular Labubu dolls has been barred by financial regulators, underscoring the increasingly fraught battle among banks for customers as interest rates and profit margins fall.
The Zhejiang branch of the national financial regulatory administration has asked local banks to refrain from giving non-compliant perks to attract deposits, according to sources.
The guidance came in the wake of a promotion by Ping An Bank Co, which has been offering Labubu collectibles – blind box toys – in multiple cities for new depositors who can park in 50,000 yuan for three months.
Such a practice, which often involves offering free items like rice or small home appliances, as well as e-gifts such as memberships at Internet platforms, was seen as driving up costs at banks and hurting their margins, said the sources.
While Ping An Bank's marketing campaign went viral on Chinese social media platform Xiaohongshu and sparked strong interest from potential savers, it also drew criticism from state media which said it was 'not a long-term solution.'
Chinese lenders are walking a tightrope as they balance between deposit taking and protecting margins. — Bloomberg
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