Core Viewpoint - The People's Bank of China will guide commercial banks to lower deposit rates through a self-discipline mechanism, which is expected to reduce banks' funding costs and enhance profitability [1] Group 1: Impact on Banks - Lowering deposit rates will help banks increase their profit margins, especially in the context of declining loan rates, thereby stabilizing net interest margins and reducing operational pressure [1] - It is anticipated that deposit rate cuts will begin to be implemented soon, with adjustments ranging from 5 to 20 basis points depending on the term [1] - Large banks are expected to act first in adjusting rates, while smaller banks may follow based on their circumstances and market competition [1] Group 2: Recommendations for Banks - Banks are encouraged to diversify their funding sources beyond traditional deposit business, such as issuing financial bonds and engaging in interbank certificate of deposit activities, to reduce reliance on deposits [1] - This diversification aims to optimize the liability structure and enhance the stability and sustainability of funding [1]