Di Yi Cai Jing·2025-12-03 11:31Core Viewpoint - The banking industry is experiencing a structural adjustment in deposit products, with a notable trend of large-denomination certificates of deposit (CDs) being phased out, particularly the 5-year term, while some small and medium-sized banks are increasing deposit rates to attract customers [1][2][3]. Group 1: Market Trends - The deposit market has entered a phase of differentiated competition, with large banks reducing long-term high-cost deposits and raising the minimum investment thresholds for large CDs [1][7]. - Major state-owned banks have collectively removed 5-year CDs from their offerings, leaving only shorter-term products available for investors [2][3]. - The exit of 5-year CDs is not sudden; many banks have already stopped offering long-term deposits, indicating a shift in banks' liability management strategies [6][3]. Group 2: Interest Rate Dynamics - There is a growing phenomenon of interest rate inversion, where shorter-term deposits offer higher rates than longer-term ones, challenging traditional pricing logic [5]. - The average net interest margin for commercial banks has decreased, with the latest data showing a net interest margin of 1.42%, down 11 basis points year-on-year [16][17]. - Some small and medium-sized banks are increasing deposit rates to enhance their competitiveness in attracting deposits, with examples showing rates as high as 1.9% for certain terms [15][16]. Group 3: Strategic Adjustments - Large banks are implementing differentiated and tiered management for large CDs, with some products requiring a minimum investment of 1 million yuan, while still offering lower-threshold options [7][13]. - The adjustments reflect a broader industry trend where banks are using traditional deposit products as tools for customer relationship management, especially in a declining interest rate environment [14]. - The ongoing pressure to reduce funding costs will likely lead banks to continue lowering deposit rates, although the pace of such reductions may slow as rates approach their lower limits [17][16].