Bank Of Jiangsu(SH:600919) Zhong Guo Zheng Quan Bao·2025-08-21 20:11Group 1 - Several banks have recently announced reductions in deposit rates, with some term products decreasing by 20 basis points, as a strategy to alleviate pressure on the liability side amid declining loan rates and narrowing net interest margins [1][2] - Jiangsu Bank has lowered its 3-year deposit rate from 1.85% to 1.75%, while other terms remain unchanged at 1.5% for 1-year and 1.6% for 2-year deposits [1] - Other banks, such as Shengzhou Ruifeng Rural Bank, have also adjusted their deposit rates, with rates for various terms reduced by 10 to 20 basis points [1] Group 2 - The banking industry is experiencing significant pressure on net interest margins, with the average net interest margin for commercial banks reported at 1.42% in Q2 2025, a year-on-year decrease of 0.12 percentage points [2] - Analysts suggest that the high proportion of fixed-term deposits in small and medium-sized banks leads to higher interest costs compared to demand deposits, necessitating a reduction in deposit rates to manage liability costs [2] - The recent stability in the Loan Prime Rate (LPR) indicates potential for further declines to stimulate domestic demand and stabilize the real estate market [2] Group 3 - Banks are adopting proactive measures to manage both asset and liability sides, with Changshu Bank emphasizing cost control and optimization of deposit structures to reduce overall interest expenses [3] - Despite facing challenges from competition and regulatory pressures, small and medium-sized banks maintain unique advantages due to their geographical and relational strengths [3]