Core Viewpoint - The recent State Council executive meeting announced the implementation of interest subsidy policies for personal consumption loans and service industry loans, aimed at reducing credit costs for residents and financing costs for service industry entities [1] Group 1: Bank Responses - Major state-owned commercial banks have responded to the new subsidy policy through public channels, with several joint-stock banks also planning related work [2] - Industrial and Commercial Bank of China (ICBC) stated it is actively promoting the implementation of the subsidy policy [2] - Agricultural Bank of China is preparing for the policy's implementation by focusing on both demand and supply sides [2] - Postal Savings Bank of China aims to leverage its extensive network to reduce consumption credit costs for urban and rural residents [2] Group 2: Execution Details - The subsidy policy is similar to targeted interest rate cuts, where banks' official rates remain unchanged, but the government provides a subsidy of 1-2 percentage points [4] - The subsidy funds will be allocated to banks rather than directly to individuals, and there will be a cap on the amount each consumer can receive [4] - Previous pilot programs in regions like Sichuan and Chongqing have laid the groundwork for this new policy [5][6] Group 3: Impact on the Banking Sector - The subsidy policy is expected to lower consumers' financial burdens, boost consumption confidence, and stimulate demand, benefiting banks' credit operations [7] - Northeast Securities indicated that the policy would benefit both consumer spending and the banking sector's fundamentals [7] - The new subsidy approach is seen as a more effective design compared to previous measures that aimed to lower interest rates and increase loan amounts [7]