Zheng Quan Shi Bao·2025-11-28 12:32Core Viewpoint - The absence of 5-year large denomination certificates of deposit (CDs) from major state-owned banks in China has raised concerns, but this trend is not new as some banks have stopped offering these products for several years [1][9]. Group 1: Product Availability - Major banks, including the six largest state-owned banks, currently do not offer 5-year large denomination CDs, which were not a long-term product type for these banks [1]. - China Bank has issued at least 37 batches of personal large denomination CDs from 2016 to 2025, with some 5-year products available in specific years, but since 2023, these are only offered to select customers [1][9]. - Agricultural Bank of China has not offered 5-year large denomination CDs since at least 2022, focusing instead on products with shorter terms [7][9]. Group 2: Interest Rate Environment - The current low interest rate environment has led banks to actively manage their liabilities, resulting in the discontinuation of longer-term large denomination CDs [9]. - As of the third quarter of this year, the net interest margin for commercial banks was 1.42%, showing a year-on-year decrease of 11 basis points, indicating ongoing pressure on profitability [9]. Group 3: Targeted Strategies - Banks are adopting differentiated deposit strategies, particularly targeting older customers with higher interest rates and lower minimum deposit requirements, which is becoming a common practice in the industry [10][11]. - This approach helps optimize the liability structure, secure stable long-term funding, and reduce liquidity management pressure [11].