Sou Hu Cai Jing·2025-12-03 09:09Core Viewpoint - The banking sector is experiencing significant pressure on net interest margins, leading to a reduction in the availability and attractiveness of long-term deposit products, particularly large-denomination certificates of deposit (CDs) [2][5][12]. Group 1: Large-Denomination Certificates of Deposit - Industrial and Commercial Bank of China (ICBC) is currently offering a three-year large-denomination CD with a minimum deposit of 1 million yuan and an interest rate of 1.55% [2][8]. - Previously, the minimum deposit for large-denomination CDs across banks was generally 200,000 yuan, indicating a shift in market conditions [2][8]. - Major state-owned banks have collectively removed five-year large-denomination CDs from their offerings, with only three-year products remaining, which have seen interest rates drop to between 1.5% and 1.75% [2][8]. Group 2: Market Adjustments and Trends - Several small and medium-sized banks have begun to adjust or eliminate their three-year and five-year fixed deposit products, reflecting a broader trend of long-term deposits "retreating" from the market [2][9]. - The first bank to publicly announce the cancellation of five-year fixed deposits was a rural bank in Inner Mongolia, which took effect on November 5 [2][9]. - At least seven private banks, including Meizhou Merchants Bank and Mybank, have also removed five-year fixed deposit products from their offerings [2][9]. Group 3: Interest Rate Trends and Financial Performance - As of the fourth quarter, multiple small and medium-sized banks have announced reductions in RMB deposit rates, with some cuts reaching as high as 80 basis points [3][9]. - According to the National Financial Regulatory Administration, the net interest margin for private banks decreased by 0.08 percentage points quarter-on-quarter, indicating a common challenge across the industry [5][11]. - Among 26 listed banks that reported third-quarter net interest margin data, 12 banks saw their margins stabilize or increase, while 14 banks continued to experience a downward trend [5][12]. - Everbright Securities predicts that the net interest margin will continue to decline in an "L" shape, with an expected annual contraction of approximately 15 basis points to 1.36% [6][12].