Core Viewpoint - The banking sector is experiencing a significant contraction in interbank liabilities, with a notable decline in net financing of interbank certificates of deposit (CDs) among major state-owned and joint-stock banks, indicating a shift in liquidity dynamics [1] Group 1: Interbank Liabilities - Major state-owned and joint-stock banks have reported negative net financing in interbank CDs for three consecutive months, with the negative values expanding each month [1] - The issuance rate of interbank CDs has been continuously declining, reaching approximately 1.59% by the end of January [1] Group 2: Contributing Factors - Improvements in deposit levels, ongoing support for liquidity from the central bank, and a slower pace of credit issuance are contributing to the reduced marginal dependence on interbank liabilities [1] - The banking system is characterized by a state of "ample liquidity," which is influencing bond markets and the yields of wealth management products [1]