Hua Xia Shi Bao·2025-12-04 00:46Core Viewpoint - Recent adjustments in the minimum deposit thresholds for large certificates of deposit (CDs) by major banks indicate a shift in the banking sector's strategy to manage deposits and maintain net interest margins, reflecting a broader industry trend towards higher entry barriers for deposit products [1][3][6] Group 1: Changes in Deposit Thresholds - Several major banks, including Industrial and Agricultural Banks, have raised the minimum deposit thresholds for large CDs significantly, with some products now requiring a minimum of 1 million yuan for 3-year CDs and 500,000 yuan for 1-year CDs, compared to the previous industry standard of 200,000 yuan [1][2] - Despite the higher thresholds, the interest rates and transferability conditions for these CDs remain unchanged, with both high and low minimum deposit products offering a rate of 1.55% [2][3] Group 2: Market Dynamics and Customer Behavior - The increase in minimum deposit amounts is not necessarily due to the attractiveness of higher threshold products but rather reflects banks' strategies to provide deposit channels for clients when lower threshold products are sold out, particularly at month-end or year-end [3] - Analysts suggest that for certain clients, the security and stability of funds, along with exclusive banking services, are more appealing than the interest rate itself, indicating a shift in customer priorities [3][6] Group 3: Banking Sector Trends - The net interest margin for commercial banks in China remains low at 1.42%, with some banks experiencing a decline, while others have stabilized their margins [4][5] - The trend of raising minimum deposit thresholds and reducing the availability of long-term deposit products is part of a broader strategy to optimize liability structures and stabilize net interest margins amid competitive pressures [5][6] - The interest rates for long-term deposits have decreased, with many banks now offering rates in the "1% range," leading to a phenomenon where shorter-term deposits are more attractive than longer-term ones [6]