BOB(SH:601169) Feng Huang Wang·2025-10-21 08:34Core Viewpoint - Recent adjustments by several small and medium-sized banks in Guizhou Province, including the cancellation of automatic renewal for notice deposits, reflect a response to regulatory requirements aimed at maintaining market order and reducing high-interest deposit products [1][2][5]. Group 1: Regulatory Changes - Guizhou Wuchuan Rural Commercial Bank announced the cancellation of the automatic renewal feature for notice deposits effective October 17, in line with regulatory directives [1][2]. - Over ten banks in Guizhou, including rural credit cooperatives and village banks, have issued similar announcements regarding the adjustment of notice deposit products [5]. - Beijing Bank has also adjusted its notice deposit rates, linking new unit notice deposits to its listed interest rates starting October 1, 2025 [5]. Group 2: Market Impact - The adjustments by local banks are seen as a move to lower notice deposit interest rates and align them more closely with demand deposit rates [5][6]. - Major state-owned banks and most joint-stock banks had already halted automatic renewal of notice deposits in the second half of last year, indicating a broader industry trend [6]. - The disappearance of high-interest deposits and the continuous decline in fixed deposit rates may encourage customers to shift their funds towards bank wealth management products and gold investments [7]. Group 3: Industry Dynamics - The pressure on banks' interest margins has increased, prompting them to reduce high-interest deposit products while seeking alternative methods to attract deposits [6]. - The competitive landscape among banks remains intense, with the potential for some high-interest products to re-emerge in the future [6].