Core Viewpoint - A new wave of deposit rate cuts is occurring across various banks in China, with over 20 banks reducing their fixed deposit rates since April, leading to a significant decline in high-interest deposits above 3% and a shift towards rates in the "1% era" [1][2][3] Group 1: Deposit Rate Cuts - Since April, at least 20 banks have lowered their deposit rates, with small and medium-sized banks and private banks taking the lead in these adjustments [3][4] - Major banks, including state-owned and joint-stock banks, have initiated the rate cuts, followed by local and private banks [2][3] - For example, Hami City Commercial Bank has reduced its one-year, two-year, three-year, and five-year deposit rates to 1.5%, 1.6%, 1.8%, and 1.85% respectively, with declines of 10 to 20 basis points [2] Group 2: Impact on Banking Sector - The reduction in deposit rates is expected to lower banks' funding costs and reduce interest expenses, which may help maintain stable interest margins [4][5] - The net interest margin for 42 banks has narrowed over the past year, with declines ranging from 1 to 51 basis points, particularly affecting joint-stock and local banks [4] - The People's Bank of China has announced a 0.1 percentage point cut in policy rates, which is anticipated to lead to a corresponding decrease in the Loan Prime Rate (LPR) [5][6] Group 3: Market Expectations and Future Trends - Following the People's Bank of China's recent monetary policy measures, there is a widespread expectation of a collective reduction in deposit rates across banks [6] - Analysts predict that the upcoming deposit rate cuts may range from 10 to 25 basis points and could begin to take effect as early as next month [6] - The current trend of deposit rate reductions is viewed as a continuation of previous rate cuts aimed at stabilizing growth and managing risks in the financial system [6]
新一轮“降息潮”来临 存款利率迈向“1时代”
Mei Ri Shang Bao·2025-05-12 22:21