Zheng Quan Shi Bao·2025-10-27 00:22Core Viewpoint - In the context of sustained pressure on net interest margins, many small and medium-sized banks are initiating a new round of interest rate cuts, actively lowering the upper limit of deposit rates to create space for profit growth [1][5]. Group 1: Deposit Rate Adjustments - Some banks have quietly started aggressive deposit collection efforts as the year-end approaches, combining this with refined and tiered customer management to stabilize general deposits while effectively controlling liability costs [1][2]. - Since early October, several small and medium-sized banks have held fourth-quarter operational meetings, emphasizing the importance of achieving a successful year-end while preparing for a strong start in the first quarter of the following year [2][3]. - The recent adjustment of deposit rates has led to most market deposit products entering the "1" range, with major state-owned banks' two-year, three-year, and five-year fixed deposit rates set at 1.05%, 1.25%, and 1.3% respectively [3][4]. Group 2: Competitive Strategies - Some banks are offering cash rewards for customers who meet core asset thresholds, with activities designed to encourage customers to keep their deposits [2][3]. - The actual execution rates for certain term deposits have seen some upward adjustments compared to the listed rates, indicating a competitive landscape among banks [4][6]. - Banks are increasingly adopting differentiated deposit strategies targeting specific customer segments, particularly offering higher rates and lower minimum deposit thresholds for older customers [7]. Group 3: Market Trends and Challenges - The continuous narrowing of net interest margins is a common challenge faced by the banking industry, prompting a focus on managing liability costs more effectively [4][5]. - The People's Bank of China has emphasized the need to lower overall bank liability costs to alleviate pressure on net interest margins, which has led to recent adjustments in deposit rates [5][6]. - The phenomenon of interest rate inversion, where shorter-term deposits offer higher rates than longer-term ones, is emerging as banks anticipate future cost pressures on long-term liabilities [6][7].