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China Observer
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Comments by "☨St Louis IX opposed paganism, hæresy \x26 debauchery" (@stlouisix3) on "Shanghai Banks Cut Salaries by Over 50%, 1,200 Bank Branches Closed in China Since 2023" video.
💰 Wage cuts in the Chinese banking industry have been widespread due to economic influences, with some employees experiencing reductions of over 50%.
00:36
Wages in the banking industry have noticeably declined, with some employees receiving minimum wage and bank chairmen seeing their salaries drop significantly.
00:36
The financial industry is also affected, with reports of bank employees' salaries falling from over 20,000 yuan to less than 7,000 yuan.
00:55
The real estate downturn, which used to account for 40% of China's GDP, is a major factor impacting the banking industry.
01:23
SPDB employees went on strike due to salary reductions, with regular staff experiencing a 50% cut and supervisors and above facing a 40% reduction.
01:40
Wage cuts are not uncommon in the Chinese banking sector, with the average salary of employees in many listed banks decreasing by over 10%.
02:31
Shanghai Banks Implement Drastic Salary Cuts, Leading to Closure of 1,200 Bank Branches in China Since 2023
😔 Bank deputy manager in China faces financial distress due to delayed performance pay and low base salary.
03:28
A deputy branch manager of a rural commercial bank in China faced financial difficulties as he received only a few hundred yuan a month due to non-payment of performance pay.
03:28
The deputy manager was forced to take on a part-time job outside, but when the bank found out, they fired him without paying the performance salary owed to him.
03:44
The deputy manager sued the bank for the payment of his overdue performance wages, but the court dismissed his claims citing the bank's regulations.
04:00
Delayed wage payment is a widespread issue in China's banking industry, with larger banks deferring a significant portion of performance salary for several years.
04:44
The base salary of commercial bankers in China is typically low, and after deductions for various insurances, the actual monthly income is not substantial.
05:34
🏦 Many Chinese banks are scaling down their operations due to operational difficulties and declining profitability.
06:21
Approximately 1,200 bank branches in China have announced the termination of their operations from January to June 2023.
06:21
The closure wave in China's banking industry began in 2022, with around 2,400 bank branches closing down.
06:40
The reduction of offline bank outlets is driven by the increasing popularity of mobile payments and the decline in physical branch customers.
07:10
The fundamental reason for the closures is the sustained economic downturn in China, leading to declining bank profits.
07:44
Chinese local banks face pressure on revenue and capital replenishment in 2023 due to weak loan demand and narrowing net interest margins.
08:17
💰 Small regional banks in China are facing financial struggles and increased risks due to the economic downturn caused by the pandemic and the sluggish real estate market.
09:05
Small regional banks in China are struggling financially due to low interest rates and the impact of the pandemic.
09:05
Non-performing loans have increased, making small banks more vulnerable.
09:23
There are concerns about insufficient funds as many tier-2 capital bonds remain unredeemed.
09:55
Some small banks have chosen not to redeem their tier-2 capital bonds, which can decrease their capital supplementation efficiency.
10:19
The Chinese real estate market's sluggishness is causing risks to expand in the banking industry.
10:51
📉 Chinese banks are facing increasing non-performing real estate loans, posing a common challenge for the banking industry.
12:23
The balance of non-performing real estate loans among Chinese banks with the largest scale increased by 61% year-on-year.
12:23
Agricultural Bank of China had a balance of 46 billion yuan in non-performing real estate loans, a year-on-year increase of 63.4%.
12:46
Several banks, including Ping An Bank, Bank of Communications, Zheshang Bank, China Merchants Bank, China Everbright Bank, and China Construction Bank, experienced excessively fast growth in non-performing real estate loans last year.
13:06
China Construction Bank's President stated that the rising non-performing real estate loan ratio is a common challenge for the banking industry, and mitigating financial risks in real estate is urgent.
13:25
Approximately 7% of Chinese-funded banks were poorly rated by the People's Bank of China's risk assessment at the end of 2021, indicating potential financial risks.
13:40
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