Core Viewpoint - Recent adjustments in deposit rates by private banks indicate a significant shift in the banking sector, with many institutions lowering rates to reduce funding costs and optimize deposit structures [4][5]. Group 1: Rate Adjustments - Fujian Huatuo Bank announced a reduction in deposit rates effective April 21, with 2-year, 3-year, and 5-year personal and corporate fixed deposit rates adjusted to 2.00%, 2.45%, and 2.50% respectively, marking a decrease of 25 basis points (bps) and 10 bps for the 3-year and 5-year products [1]. - Wuxi Xishang Bank's 3-year deposit rate was lowered from 2.6% to 2.5%, and the 5-year rate from 2.5% to 2.4% [2]. - The recent rate cuts are part of a broader trend, with over half of the 19 private banks surveyed reducing their deposit rates in April, particularly focusing on longer-term products [4]. Group 2: Market Dynamics - The rapid and concentrated nature of the recent rate cuts reflects the competitive landscape and varying strategies among banks, influenced by factors such as market competition and customer positioning [4]. - Private banks, traditionally known for higher interest rates to attract deposits, are now experiencing a shift due to their relatively weaker deposit absorption capabilities [4]. Group 3: Economic Context - The need to lower financing costs for the real economy has prompted banks to reduce their funding costs, particularly for medium to long-term deposits, which have more room for adjustment [5]. - Experts suggest that banks should optimize their deposit rates while enhancing financial services to support residents' investment and wealth management needs [6].