Zhong Guo Zheng Quan Bao·2025-10-21 20:18Core Viewpoint - The recent trend of lowering deposit rates among small and medium-sized banks is driven by the need to optimize liability structures and control funding costs, amidst a backdrop of anticipated interest rate declines and the phenomenon of inverted deposit rates for different maturities [1][2][3][4] Group 1: Deposit Rate Adjustments - Several small and medium-sized banks, including Suzhou Commercial Bank and Pingyang Pudong Development Village Bank, have announced reductions in deposit rates, with some three-year and five-year rates decreasing by as much as 80 basis points [1][2] - Suzhou Commercial Bank will lower its three-year deposit rate from 2.2% to 2.1% starting October 22, with a minimum deposit requirement of 100,000 yuan [1] - The trend of rate reductions is not isolated, as multiple banks have made similar announcements, indicating a broader industry shift [2] Group 2: Inverted Deposit Rates - The phenomenon of inverted deposit rates, where shorter-term deposit rates exceed those of longer-term deposits, is becoming increasingly common across various types of banks, including state-owned and joint-stock banks [2][3] - For instance, China Construction Bank offers a three-year deposit rate of 1.55%, which is higher than its five-year rate of 1.3% [3] - This inversion is attributed to market expectations of further interest rate declines, leading banks to adjust their deposit offerings accordingly [3] Group 3: Liability Structure Adjustments - Industry experts suggest that the inverted deposit rates are linked to banks' efforts to adjust their liability structures in response to increasing pressure on the funding side [3][4] - Banks are actively lowering long-term deposit rates to optimize their funding costs and mitigate the impact of narrowing net interest margins [3] - The anticipated future decline in interest rates is prompting banks to reassess their deposit strategies to maintain operational efficiency [4]