Sou Hu Cai Jing·2025-10-26 23:09Core Viewpoint - The report from the Bank of China Research Institute indicates that more banks, particularly small and medium-sized banks, are expected to lower deposit interest rates in the last quarter of 2025, especially for medium- and long-term deposits [1] Group 1: Deposit Rate Changes - In the second quarter, the six major state-owned banks lowered their deposit rates, with the current deposit rate dropping to an unprecedented 0.05%, meaning a deposit of 10,000 yuan yields only 5 yuan in annual interest [3] - The one-year fixed deposit rate is now at 0.95%, while the three-year fixed deposit rate is only 1.25%, aligning with the zero-interest rate environment seen in developed economies [3] - Joint-stock banks have also joined the trend of lowering interest rates, with one-year fixed deposit rates around 1.15%, while some city commercial banks and provincial rural commercial banks have rates between 1% and 1.1% [4] Group 2: Comparison of Bank Rates - A table shows various banks' deposit rates, with state-owned banks offering rates of 0.95% for one-year fixed deposits and 1.25% for three-year fixed deposits, while some smaller banks still maintain higher rates [6] - Smaller banks like Shanghai Huari Bank have begun to lower their deposit rates, but their rates remain higher than those of the six major state-owned banks, with one-year fixed deposit rates at 1.5% and three-year rates at 2.3% [12] Group 3: Economic Context - The decline in deposit rates is attributed to banks' varying operational conditions and the need to lower costs in a competitive lending environment, particularly affecting smaller banks that rely heavily on interest rate spreads [7] - The People's Bank of China has not adjusted the benchmark deposit rates since July 2011, leading to a situation where the rates set by the six major banks effectively replace the central bank's rates [12] - The financial system's structural changes have resulted in deposit rates for major banks nearing zero, with current rates at 0.05% for current accounts and 0.9% for one-year fixed deposits [13]