Core Viewpoint - The article highlights the trend of decreasing interest rates on long-term deposits, indicating that shorter-term deposits are becoming more attractive to savers as banks adjust their rates in response to market conditions [1][2][12]. Group 1: Interest Rate Adjustments - As of May 13, 2023, Tianjin Bank adjusted its "Seagull Deposit" rates, showing a significant drop in the 5-year rate to 1.75%, which is lower than the 2-year rate of 1.8% [2][5]. - Other banks, such as Xinjiang Ku'erle Fumin Village Bank and Shandong Yinan Blue Ocean Village Bank, also reported that their 1-year deposit rates (2% and 1.8% respectively) are higher than their 5-year rates (1.95% and 1.8%) [6][12]. - The trend of "long-term deposits yielding less" is becoming common across various banks, indicating a shift in deposit strategies [5][11]. Group 2: Large Denomination Certificates of Deposit (CDs) - Large denomination CDs have also seen a decline in interest rates, with Tianjin Bank reducing its 3-year CD rate from 2.10% to 2.05% [8]. - The phenomenon of rate inversion is noted, where 3-year CDs yield higher rates than 5-year CDs, as seen with Xishang Bank's 3-year CD at 2.6% compared to 2.5% for the 5-year [8][12]. Group 3: Market Dynamics and Bank Strategies - Analysts suggest that the decline in long-term deposit rates is a strategic move by banks to manage their liabilities and optimize interest rate risk management [12]. - The competition for short-term deposits has intensified, prompting banks to raise short-term rates while lowering long-term rates [12]. - The People's Bank of China has also adjusted the 7-day reverse repurchase rate, which is expected to influence loan market rates and subsequently deposit rates [13].
又见“长存利少”！多家银行存款利率倒挂