Mei Ri Jing Ji Xin Wen·2025-12-04 16:54Core Viewpoint - The collective withdrawal of 5-year large denomination certificates of deposit (CDs) by six major state-owned banks has led to a significant shift in the market, with some small and medium-sized banks seizing the opportunity to promote their long-term deposit products as alternatives [1][2][18]. Group 1: Market Trends - The trend of shortening the term structure of large denomination CDs is evident, with the maximum available term generally reduced to three years and interest rates dropping to between 1.5% and 1.75% [2][20]. - Long-term, high-interest deposit products are becoming increasingly scarce, posing challenges for conservative investors who need to adjust their strategies [2][20]. Group 2: Small and Medium-Sized Banks' Strategies - Small and medium-sized banks are actively marketing their long-term deposit products, highlighting their competitive interest rates and terms in response to the withdrawal of major banks [2][4]. - Some banks are offering large denomination CDs with interest rates above 1.8%, while others have introduced alternative deposit products with similar rates but lower minimum deposit requirements [5][12]. Group 3: Customer Engagement and Marketing - Customer managers from small banks are leveraging the situation to attract clients by emphasizing the scarcity and advantages of their deposit products on social media platforms [2][4]. - The marketing efforts align with the traditional peak season for deposit gathering, allowing banks to secure a customer base seeking stable returns before the year-end [4][20]. Group 4: Interest Rate and Accessibility - Interest rates for large denomination CDs have been raised in some banks, with minimum deposit requirements reaching as high as 1 million to 1 billion [9][11]. - Despite the scarcity of high-interest large denomination CDs, some banks continue to offer competitive rates on alternative deposit products, ensuring accessibility for a broader customer base [12][15]. Group 5: Future Outlook - The overall trend indicates a tightening of supply for long-term, high-yield deposit products across various banks, with expectations of a long-term decline in deposit rates [20][21]. - Banks face the challenge of balancing deposit volume and pricing while managing risks associated with higher interest rates and liquidity [21][22].