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Banks sold more than a third of shares and bonds under the guise of deposits

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More than a third (40%) of sales of stocks and bonds in banks are made under the guise of deposits, according to a study by the Association for the Development of Financial Literacy (ARFG). This spring, volunteers and activists of the association investigated cases of misselling (fraudulent sales) in the sale of financial products by credit institutions in 12 cities, Izvestia found out.

The current moment is especially favorable for misseling. After a sharp increase in the key rate, banks in March of this year began to offer deposits at 20% per annum. But the yield on deposits began to fall rapidly after the decision of the regulator to reduce the rate. Now even the average promised yield is approaching 7%, which is more than half the current inflation rate.

“This spring, for various reasons, banks began to actively offer clients supposedly more profitable ways to save money compared to deposits. First of all – shares in mutual funds, as well as stocks and bonds. But these are financial instruments that are significantly different from deposits, and giving one for the other is nothing more than misselling, ”the ARFG study notes.

According to the data received, 40% of sales of shares and bonds were made under the guise of deposits. And banks forget to mention that the profitability is not guaranteed, respectively, the risks for such an instrument are higher.

“As a result, the client expects to receive the profitability announced by the manager by analogy with how he receives interest on the deposit (which he actually came for – until he was offered an “interesting alternative”), and, to put it mildly, is perplexed seeing on his account an amount less than it was originally, ”explained in the study.

Read more in the exclusive Izvestia article:

“False interest: banks sell 40% of stocks and bonds under the guise of deposits”

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