Zhong Guo Ji Jin Bao·2025-06-09 16:07Core Viewpoint - The recent trend shows that medium to long-term large-denomination certificates of deposit (CDs) are being quietly withdrawn from sale by several major banks, with a focus on three-year and five-year terms, leading to a significant drop in interest rates for these products [1][2][4]. Group 1: Market Changes - Major banks such as Industrial and Commercial Bank of China, China Construction Bank, and China Merchants Bank have removed five-year large-denomination CDs from their offerings, with some also discontinuing three-year CDs [2][4]. - Currently, most banks are only offering large-denomination CDs with a maximum term of two years, and the availability of three-year CDs is limited or restricted to select clients [2][4]. Group 2: Interest Rate Trends - The interest rates for available large-denomination CDs have collectively dropped to the "1" range, with specific rates for different terms: for example, ICBC offers rates of 0.9% for one month and 1.55% for three years [3][4]. - The overall interest rates for two-year and shorter large-denomination CDs are concentrated between 0.9% and 1.4%, while three-year rates range from 1.55% to 1.75% [3]. Group 3: Bank Strategies - Banks are increasingly focusing on managing their funding costs, which has led to the withdrawal of medium to long-term large-denomination CDs as a strategy to stabilize net interest margins [4]. - The banking sector is under pressure to reduce funding costs, especially in a declining interest rate environment, which affects their willingness to attract long-term deposits at higher costs [4].