Core Viewpoint - Several regional small and medium-sized banks are increasing deposit rates despite the trend of national banks lowering rates, aiming to attract funds during a critical period when many fixed-term deposits are maturing [1][4]. Group 1: Deposit Rate Adjustments - Since January, small and medium-sized banks in regions like Zhejiang, Hunan, and Shaanxi have raised rates on certain fixed-term deposits and large-denomination certificates of deposit (CDs) by 5 to 20 basis points [1][5]. - For instance, Wenzhou Bank's three-year deposit rate can reach up to 1.85%, while its three-year large-denomination CD offers a maximum rate of 1.9% [1][5]. - Hunan's Xinhuang Rural Commercial Bank has adjusted its rates for one-year, two-year, and three-year fixed deposits to 1.3%, 1.4%, and 1.75% respectively, with large-denomination CDs at 1.4% and 1.8% for one-year and three-year terms [1][5]. Group 2: Specific Rate Details - The Shannan Rural Commercial Bank in Shaanxi announced a temporary increase in rates for three-month, six-month, one-year, and two-year deposits by approximately 15 basis points [7]. - Beipiao Shengdu Village Bank has adjusted its rates for various terms, with one-year, two-year, three-year, and five-year rates set at 1.65%, 1.70%, 1.70%, and 1.65% respectively, each up by 5 basis points [3][7]. - Many of these higher rates come with minimum deposit requirements, often making it difficult for smaller deposits to benefit from the best rates [3][7]. Group 3: Market Dynamics and Strategies - Industry experts note that the beginning of the year is a crucial time for fund inflows, as many fixed-term deposits mature, prompting small banks to raise rates to capture this "window period" [4][8]. - To attract new funds and retain existing customers, smaller banks may temporarily increase deposit rates, especially given their weaker brand influence compared to larger national banks [4][8]. - Experts suggest that while these rate increases may achieve short-term deposit goals, small banks need to develop core competencies and differentiate themselves to ensure long-term sustainability [4][8].

Core Insights - The banking deposit business is experiencing a "temperature difference" phenomenon, with personal fixed deposits showing significant growth while demand for current deposits is uneven across banks [1][3][10] Group 1: Personal Fixed Deposits - Personal fixed deposit balances across nine listed banks showed positive year-on-year growth in the first three quarters of 2025, with notable increases from Hangzhou Bank (29.12%), Chengdu Bank, and Nanjing Bank (both over 24%) [3][4] - City commercial banks are performing well due to their deep ties with regional economies and flexible product innovation strategies [3][4] - The growth in personal fixed deposits reflects a shift in residents' asset allocation preferences, driven by lower risk tolerance amid market volatility [5][10] Group 2: Current Deposits - Current deposit growth is characterized by significant disparities, with some banks experiencing strong growth while others face declines [6][7] - Shanghai Pudong Development Bank reported a current deposit balance of 4,617.38 billion yuan, growing by 11.80% year-on-year, attributed to effective deposit management strategies [6][7] - Some regional banks, like Ruifeng Rural Commercial Bank, reported a decline in current deposits, indicating challenges in maintaining customer loyalty and competitive positioning [8][9] Group 3: Industry Trends and Strategies - The overall increase in household deposits and the rise of net worth management products indicate a shift in the banking industry's competitive landscape, moving from scale competition to a focus on comprehensive financial service capabilities [10][12] - Banks are adopting differentiated strategies to attract long-term funds and enhance service offerings, with a focus on optimizing deposit structures and managing costs effectively [11][12] - The trend of fixed deposits is expected to continue as interest rates decline, prompting banks to adapt their strategies to align with changing resident asset allocation needs [12]