Core Viewpoint - The article highlights the current trend of declining bank deposit rates, with many banks offering rates below 2%, while some private banks still provide higher rates for large time deposits, indicating a competitive landscape in the banking sector [1][2]. Group 1: Deposit Rates and Products - Many private banks, such as Huari Bank and Webank, offer large time deposits with interest rates exceeding 2%, with Huari Bank providing a 24-month deposit at 2.35% and a 3-year deposit also at 2.35% [1]. - The demand for high-interest products is strong, with limited availability and quick sales, making them popular in the secondary market [1]. - Webank has introduced a service for investors to pre-order large time deposits based on specific interest rate and term criteria, enhancing customer engagement [2]. Group 2: Challenges Faced by Private Banks - Private banks generally have higher deposit rates than traditional banks, but their competitive advantage is diminishing due to continuous interest rate cuts [2]. - The lack of physical branches and brand influence poses significant customer acquisition and deposit challenges for many private banks [2]. - There is a noticeable disparity in deposit rates among private banks, with some, like WeBank, offering lower rates comparable to state-owned banks, reflecting different operational models [2][3]. Group 3: Interest Margin and Pricing Strategies - Despite higher liability costs, private banks maintain a net interest margin that is significantly higher than other types of commercial banks, although their net interest margin has seen the largest decline among all bank categories [3]. - As of Q2 2025, the net interest margin for private banks was reported at 3.91%, down 0.04 percentage points from the previous quarter, indicating pressure on profitability [3]. - The current environment compels private banks to adopt more rational deposit pricing strategies due to difficulties in finding high-yield assets to match liabilities [3]. Group 4: Strategic Recommendations - To address increasing deposit acquisition pressure, private banks are encouraged to develop open banking ecosystems and collaborate with third-party platforms to expand customer acquisition channels [4]. - There is a need for innovation in personal finance and wealth management products to provide differentiated solutions and enhance customer loyalty [4].

Core Viewpoint - The article highlights the increasing pressure on banks to attract deposits as the end of the quarter approaches, leading to a significant rise in interest rates offered to depositors, with some rates exceeding industry norms [2][4][6]. Group 1: Deposit Pressure and Interest Rates - Banks are facing heightened pressure to meet deposit targets, especially at the end of the month and quarter, resulting in offers of interest rates as high as "万12" (12 yuan for every 10,000 yuan) and even "万17" [2][4][5]. - The typical interest rates offered by banks have doubled compared to previous levels, which were around "万5" to "万8" [2][4]. - Employees are reportedly using personal funds to supplement interest rates to meet these targets, indicating a trend of "hand-made interest" practices [2][5][8]. Group 2: Declining Deposit Attractiveness - The attractiveness of bank deposits has decreased due to continuous interest rate cuts, leading many customers to prefer investment products over traditional savings [6][8]. - Recent rounds of interest rate reductions have seen banks collectively offering rates in the "1" range, further diminishing the appeal of deposits [6][8]. Group 3: Regulatory Environment - Regulatory bodies have been tightening controls on banks' liability cost management, particularly regarding practices like "hand-made interest," which are being scrutinized [8]. - Banks are required to comply with regulations that limit high-interest deposit solicitation, leading to creative but potentially non-compliant methods of attracting deposits [2][8].