Bank Of Jiangsu(SH:600919) 2 1 Shi Ji Jing Ji Bao Dao·2025-10-20 12:41Core Viewpoint - The recent trend of banks lowering deposit interest rates has become commonplace, particularly among small and medium-sized banks, with significant reductions in long-term deposit rates due to strong market expectations for future interest rate cuts [1][2][3]. Group 1: Deposit Rate Adjustments - Multiple banks, especially small and medium-sized ones, have recently announced reductions in deposit rates, with the most significant cuts observed in three-year and five-year deposit rates, decreasing by 15 to 40 basis points [1][2]. - Shanghai Huari Bank reduced its three-year fixed deposit rate from 2.3% to 2.15%, marking the seventh rate cut this year, with similar actions taken by other small banks [2][3]. - The overall trend shows that national banks' three-year and five-year fixed deposit rates have dropped to the 2% range, with some even falling below 1% [3][5]. Group 2: Reasons for Rate Cuts - The primary reasons for the recent deposit rate cuts include the need to address net interest margin pressures and the desire to reduce funding costs in a declining deposit rate environment [3][4]. - Analysts suggest that the adjustments are not coincidental but are related to the economic realities, indicating a potential improvement in the operational ecosystem of small and medium-sized banks [5][6]. Group 3: Interest Rate Inversion - A notable phenomenon is the frequent occurrence of interest rate inversion, where long-term deposit rates are lower than short-term rates, contrary to typical expectations [6]. - For instance, Shanghai Huari Bank's three-year deposit rate is 2.15%, while the five-year rate is slightly lower at 2.1%, highlighting this inversion trend [6]. - Analysts believe that banks are intentionally guiding depositors towards shorter-term deposits to manage the costs associated with long-term deposits, indicating a strategic shift in deposit pricing [6].