Sou Hu Cai Jing·2025-05-22 06:54Core Viewpoint - Several Chinese banks have collectively lowered deposit rates, following the state-owned banks' decision on May 20, indicating a trend towards interest rate marketization and adjustments in response to macroeconomic conditions [1][4][7]. Summary by Category Deposit Rate Adjustments - On May 22, Zheshang Bank announced new deposit rates, with the following changes: - Demand deposit rate decreased to 0.05%, down by 5 basis points - One-year fixed deposit rate decreased to 1.15%, down by 15 basis points - Two-year fixed deposit rate decreased to 1.30%, down by 15 basis points - Three-year fixed deposit rate decreased to 1.55%, down by 25 basis points - Five-year fixed deposit rate decreased to 1.60%, down by 25 basis points [1][2][4]. Industry-Wide Rate Changes - Following Zheshang Bank, Bohai Bank and Hengfeng Bank also announced reductions in deposit rates, with adjustments ranging from 5 to 25 basis points. All 12 national joint-stock commercial banks have now lowered their deposit rates [4][7]. - The adjustments reflect a broader trend where banks are reducing rates on demand deposits by 5 basis points and fixed deposits by 15 to 25 basis points [4]. Market Context and Implications - Experts suggest that the reduction in deposit rates is a normal market behavior and a result of deepening interest rate marketization reforms. Banks are adjusting rates to maintain competitiveness amid changing macroeconomic conditions and tighter monetary policy [7]. - The chief economist of Minsheng Bank noted that this round of rate cuts is the seventh proactive adjustment by commercial banks, aimed at optimizing deposit rate structures and reducing funding costs [7]. - The first quarter data shows that the net interest margin for commercial banks was 1.43%, down 0.09 percentage points from the previous quarter, indicating increased pressure on banks' profitability [8].