Zhong Guo Zheng Quan Bao·2025-11-26 20:20Group 1 - The core viewpoint of the articles highlights a trend among banks, particularly private banks, to discontinue long-term deposit products, specifically five-year fixed-term deposits, in response to policy adjustments and to manage funding costs amid narrowing net interest margins [1][2][3] - Several private banks have removed five-year fixed-term deposit products from their offerings, with some banks experiencing a phenomenon of interest rate inversion, where the interest rate for three-year deposits exceeds that of five-year deposits [2][3] - Major state-owned and joint-stock banks are also reducing the availability of long-term large-denomination certificates of deposit (CDs), with some banks indicating that five-year CDs are no longer available [3] Group 2 - The primary reason for banks ceasing the issuance of long-term large-denomination CDs and fixed-term deposits is to actively reduce funding costs in response to the pressure of narrowing net interest margins [3][4] - Bank executives have indicated that the overall net interest margin situation is stabilizing, attributed to manageable negative impacts from monetary policy adjustments and coordinated adjustments in deposit rates alongside LPR reductions [4] - Banks are optimizing their liability structures by controlling the growth of high-cost deposits and adjusting the issuance plans for deposit products to lower deposit rates [4]