Core Viewpoint - The recent cancellation of long-term deposit products by banks, particularly in Inner Mongolia, highlights a trend where banks are attempting to alleviate pressure on net interest margins by phasing out these products, which were once key for attracting deposits [1][2][4]. Group 1: Market Trends - Several village banks in Inner Mongolia have announced the cancellation of five-year fixed deposit products, with other banks also reducing interest rates on various deposit terms by 5 to 10 basis points [2][3]. - Nearly half of the private banks have quietly removed three-year and five-year fixed deposit products from their apps, with some institutions now offering a maximum deposit term of only one year [2][3]. - Major banks have also followed suit, with many national and regional banks discontinuing long-term deposit products and large certificates of deposit [3][4]. Group 2: Financial Implications - The direct reason for the removal of long-term deposits is to ease the pressure on net interest margins, which have reached historical lows, with commercial banks' net interest margin dropping to 1.42% as of the second quarter [4][5]. - The narrowing of net interest margins is evident across different types of banks, with city commercial banks, rural commercial banks, and private banks experiencing declines of 8 basis points, 14 basis points, and 30 basis points respectively compared to the previous year [4]. - Analysts suggest that the reduction in high-cost long-term deposits will help lower banks' funding costs, potentially stabilizing and improving net interest margins in the future [4][6].