Core Viewpoint - The recent trend of lowering deposit interest rates among banks, particularly small and medium-sized banks, is a response to the earlier rate cuts by major state-owned and joint-stock banks, aimed at stabilizing funding costs for banks [1][5]. Group 1: Deposit Rate Adjustments - Many rural commercial banks and village banks have announced reductions in deposit interest rates, following the lead of larger banks [1][3]. - For example, Qionghai Xingfu Village Bank adjusted its interest rates on various deposit products, with the current account rate dropping from 0.1% to 0.05%, and fixed-term rates for one to five years also reduced [3][5]. - A number of other banks, including Chaoyang Rural Commercial Bank and Xuwen Rural Commercial Bank, have also lowered their deposit rates in early June [3]. Group 2: Impact on Banking Sector - The reduction in deposit rates is seen as a necessary step to alleviate the pressure on net interest margins faced by banks [5]. - As of the first quarter of 2025, net interest margins for different types of banks have decreased, with state-owned banks at 1.33%, joint-stock banks at 1.56%, city commercial banks at 1.37%, and rural commercial banks at 1.58%, all showing declines compared to the end of 2024 [5]. - Lowering deposit rates can help banks reduce interest expenses, mitigate the trend of long-term deposits, stabilize funding costs, and improve profitability, thereby enhancing the sustainability of financial services to the real economy [5].

Group 1 - The core viewpoint is that Pan Gongsheng will guide commercial banks to lower deposit interest rates [1] Group 2 - This action is expected to influence the overall banking sector's interest rate policies [1] - The adjustment in deposit rates may lead to changes in lending rates, impacting the cost of borrowing for consumers and businesses [1]