Guo Ji Jin Rong Bao·2025-12-04 14:28Core Viewpoint - The recent adjustment by Industrial and Commercial Bank of China (ICBC) to raise the minimum investment for its 3-year large-denomination certificates of deposit (CDs) to 1 million yuan reflects a broader industry trend where commercial banks are transforming traditional large deposit products into tools for customer relationship management [1][5]. Group 1: Changes in Deposit Products - ICBC has increased the minimum investment for its "high-end" 3-year large-denomination CD to 1 million yuan, while still offering regular products starting at 200,000 yuan [2][3]. - Agricultural Bank of China (ABC) has a similar product with a minimum investment of 5 million yuan, while also maintaining lower threshold products [4]. - Many banks have removed 5-year large-denomination CDs from their offerings, indicating a tightening of availability for medium to long-term large-denomination CDs [4]. Group 2: Interest Rates and Market Dynamics - The interest rates for the high-threshold large-denomination CDs have aligned with those of regular 3-year fixed deposits, both at 1.55% [4]. - The limited availability of large-denomination CDs has led to a situation where banks are using these products to attract high-end clients rather than relying on interest rates as the main draw [5]. Group 3: Strategic Implications for Banks - The adjustments in deposit structures are seen as a strategy to manage high-cost liabilities and stabilize net interest margins, which have been under pressure [5]. - By increasing the minimum investment threshold, banks aim to reduce the number of lower-value depositors, thereby lowering operational and management costs [5]. - The trend of adjusting deposit structures and lowering interest rates is becoming a normalized practice in the banking industry as they seek to maintain profitability in a low-interest environment [5][6].