Zhong Guo Ji Jin Bao·2026-02-11 06:34Core Viewpoint - The recent trend of interest rate cuts on deposits has accelerated, with various banks, including state-owned and regional banks, quickly following suit to lower their deposit rates, indicating a significant shift in the banking sector's approach to managing interest rates and net interest margins [1][4]. Group 1: Interest Rate Adjustments - Changsha Bank announced a reduction in its deposit rates effective August 1, with cuts ranging from 10 to 20 basis points for various terms [2]. - Other banks, such as Xiamen Bank and Jiangsu Bank, also adjusted their deposit rates, aligning with the reductions made by major state-owned banks [2]. - In Guangxi, Longsheng Rural Commercial Bank lowered its deposit rates, with the one-year term dropping to 1.55%, a reduction of 20 basis points [2]. Group 2: Speed of Rate Cuts - The current round of interest rate cuts began on July 25, with major state-owned banks leading the way, followed by 18 joint-stock banks within four days [4]. - The rapid pace of these adjustments is notable compared to previous cycles, where larger banks typically initiated changes, and smaller banks followed later [4]. - Analysts suggest that the quick response from smaller banks may be due to increased pressure on net interest margins and the market's adaptation to previous rate cuts [4]. Group 3: Future Outlook - Experts predict that deposit rates may continue to decline throughout the year, with potential further cuts expected in the fourth quarter or early next year [5]. - The chief economist at Minsheng Bank noted that the recent rate cuts could lead to a shift of deposits towards wealth management products, as the market for such products has been recovering rapidly [6].