Zhong Guo Zheng Quan Bao·2025-05-28 20:34Core Viewpoint - The recent adjustment of deposit interest rates by various banks reflects significant pressure on net interest margins, with a notable trend of rapid follow-up and substantial rate cuts observed across the banking sector [1][4][5]. Group 1: Rate Adjustments - Since May 20, multiple city commercial banks and private banks have quickly followed suit in lowering deposit interest rates, with some banks reducing rates by as much as 30 basis points [1]. - Shanghai Huari Bank has lowered its deposit rates for the third time since April, with a 10 basis point reduction for both demand and 3-year fixed deposits [2]. - As of May 28, several city commercial banks, including Beijing Bank and Jiangsu Bank, have completed their deposit rate adjustments [2]. Group 2: Comparative Analysis - After adjustments, Ningbo Bank's deposit rates remain higher than those of other city commercial banks, with rates for various terms ranging from 0.80% to 1.60% [3]. - In contrast, Changsha Bank has implemented larger rate cuts, with reductions of up to 30 basis points for longer-term deposits [3]. Group 3: Implications of Rate Cuts - The current round of deposit rate cuts is characterized by larger and faster adjustments compared to previous rounds, indicating ongoing pressure on banks' net interest margins [4][5]. - Analysts suggest that the average reduction in deposit rates exceeds the LPR cut, which may lead to a structural adjustment in bank liabilities, potentially causing a "deposit migration effect" [6]. - The significant rate cuts may prompt depositors to move funds from lower-rate banks to those offering higher rates or to shift some deposits into non-bank financial products [6].