Core Viewpoint - The recent adjustment of deposit interest rates by various banks reflects significant pressure on net interest margins, with a notable trend of rapid follow-up and substantial rate cuts observed across the banking sector [1][4][5]. Group 1: Rate Adjustments - Since May 20, multiple city commercial banks and private banks have quickly followed suit in lowering deposit interest rates, with some banks reducing rates by as much as 30 basis points [1]. - Shanghai Huari Bank has lowered its deposit rates for the third time since April, with a 10 basis point reduction for both demand and 3-year fixed deposits [2]. - As of May 28, several city commercial banks, including Beijing Bank and Jiangsu Bank, have completed their deposit rate adjustments [2]. Group 2: Comparative Analysis - After adjustments, Ningbo Bank's deposit rates remain higher than those of other city commercial banks, with rates for various terms ranging from 0.80% to 1.60% [3]. - In contrast, Changsha Bank has implemented larger rate cuts, with reductions of up to 30 basis points for longer-term deposits [3]. Group 3: Implications of Rate Cuts - The current round of deposit rate cuts is characterized by larger and faster adjustments compared to previous rounds, indicating ongoing pressure on banks' net interest margins [4][5]. - Analysts suggest that the average reduction in deposit rates exceeds the LPR cut, which may lead to a structural adjustment in bank liabilities, potentially causing a "deposit migration effect" [6]. - The significant rate cuts may prompt depositors to move funds from lower-rate banks to those offering higher rates or to shift some deposits into non-bank financial products [6].

Core Viewpoint - Recent adjustments in deposit interest rates by multiple small and medium-sized banks indicate a significant shift towards lower rates, with many long-term fixed deposit products falling below 2% following the People's Bank of China's (PBOC) monetary policy changes [1][2]. Group 1: Deposit Rate Adjustments - Several small and medium-sized banks, including Hami City Commercial Bank and Liaocheng Hunan Rural Commercial Bank, have lowered their deposit rates, with some long-term fixed deposit rates now entering the "1 era" [1][2]. - As of May 8, Hami City Commercial Bank's new deposit rates for personal fixed deposits are 1.5% for 1-year, 1.6% for 2-year, 1.8% for 3-year, and 1.85% for 5-year, reflecting a decrease of 10 to 15 basis points [1]. - Liaocheng Hunan Rural Commercial Bank's adjusted rates for 2-year, 3-year, and 5-year deposits are now 1.89%, 1.98%, and 1.98%, respectively, down from previous rates of 2.1% and 2.16% [1]. Group 2: Reasons for Rate Cuts - The recent rate cuts are primarily driven by the pressure on banks' net interest margins, which have reached historical lows of 1.38% for city commercial banks and 1.73% for rural commercial banks as of Q4 2024 [2]. - The adjustments are a direct response to the PBOC's recent monetary policy actions aimed at reducing banks' funding costs and alleviating the pressure on net interest margins, thereby creating room for banks to offer lower loan rates to the real economy [2]. Group 3: Future Outlook - Market interest rates are expected to continue on a downward trend, suggesting that deposit rates may further decline in the near future [3]. - Financial analysts recommend that ordinary savers adjust their asset allocation strategies in light of the diminishing high-yield assets, suggesting diversification and a focus on different liquidity and risk profiles in investment products [3].