Core Viewpoint - The recent news regarding Yilian Bank's early redemption of the "3-Year Exclusive Deposit" product has sparked widespread attention, with the bank denying any suspension of deposit products and confirming that the product in question is no longer available for sale [1][2]. Group 1: Early Redemption and Interest Rates - Yilian Bank has decided to redeem the "3-Year Exclusive Deposit" product early, which offers a comprehensive annual interest rate of 4.2%, composed of a base rate of 2.95% and an additional 1.25% from a third-party collaboration [1][2]. - The bank's customer service has stated that there is no suspension of any deposit products and that any adjustments would be announced in advance [1][2]. Group 2: Third-Party Collaboration - The third-party involved in the additional interest rate is Hunan Chengshengde Technology Co., Ltd., with whom Yilian Bank has collaborated since 2022 [2]. Group 3: Regulatory Environment - Since last year, regulatory authorities have intensified efforts to curb illegal high-interest deposit solicitation, with a directive issued to prohibit manual interest supplementation [3]. - Similar practices of not directly returning benefits to depositors but achieving high interest rates through third-party services have been reported in other banks [3]. Group 4: Financial Performance - Yilian Bank's 2024 financial report indicates a decline in both deposit and loan balances, with total deposits at 27.77 billion yuan, down 14.73% from the previous year [10][11]. - The bank's personal fixed deposit ratio is excessively high at 84%, contributing significantly to the overall decline in deposits, which fell by 9.51% year-on-year [11]. - The bank reported a net loss of 589.59 million yuan in 2024, marking a 520% decrease compared to the previous year, making it the only loss-making bank among 19 private banks [13][14]. Group 5: Management Compensation - Despite the significant loss, the compensation for the bank's directors and senior management remained relatively stable, with a total pre-tax remuneration of 31.71 million yuan in 2024, only a 17.66% decrease from 2023 [15].

Group 1 - The core viewpoint of the articles is that a new wave of interest rate cuts is sweeping through the banking industry, initiated by the People's Bank of China, with significant adjustments made by major state-owned banks and other financial institutions [2][3][6] - On May 20, 2025, major state-owned banks lowered their deposit rates, with the one-year deposit rate falling below 1%, and the adjustment range for fixed-term deposits varying from 0.15 to 0.25 percentage points [2][3] - Despite the overall trend of rate cuts, Yilian Bank reportedly raised its one-year fixed deposit rate from 1.85% to 2.00% on May 21, 2025, although this claim was later disputed as the bank's official website showed the rate remained at 1.85% [1][4][5] Group 2 - The net interest margin of commercial banks in China narrowed to 1.43% in Q1 2025, a decrease of 9 basis points from the previous quarter, indicating pressure on bank profitability [3][6] - Analysts predict that the overall interest margin for banks may decline by 10 to 15 basis points throughout 2025 due to the combination of LPR cuts and lower funding costs [3][6] - Some smaller banks, like Blue Ocean Bank, have also attempted to raise deposit rates in 2025, indicating a strategy to attract funds amid a competitive environment [6][7] Group 3 - The trend of interest rate adjustments reflects a broader strategy among banks to manage their funding costs and attract deposits, particularly in a low-interest-rate environment [2][6] - Analysts suggest that small and medium-sized banks should focus on niche markets and enhance service quality to differentiate themselves in a competitive landscape [7]

Group 1 - The Loan Prime Rate (LPR) experienced its first reduction of the year on May 20, with expectations of a new wave of interest rate cuts across the banking sector [1][2] - Major state-owned banks, including ICBC, Bank of China, and Agricultural Bank of China, lowered their deposit rates, with one-year deposit rates falling below 1% [2][3] - Private banks, such as Sanxiang Bank and Blue Ocean Bank, also announced reductions in deposit rates, indicating a widespread trend in the banking industry [2] Group 2 - Yilian Bank attracted attention for reportedly raising its one-year fixed deposit rate from 1.85% to 2.00% on May 21, although this announcement could not be verified on their official website [3][4] - The bank's official rate for one-year fixed deposits remained at 1.85% as of May 26, suggesting that the reported increase may have been a temporary promotional activity [4][5] - Analysts noted that Yilian Bank's previous adjustments included rate cuts for longer-term deposits, indicating a general trend of declining rates despite short-term promotional increases [5][6] Group 3 - The narrowing of net interest margins for commercial banks was highlighted, with the margin dropping to 1.43% in Q1 2025, down 9 basis points from the previous quarter [3] - Analysts predict a further decline in net interest margins by 10 to 15 basis points for the entire year of 2025 due to the LPR reduction and lower funding costs [3] - The strategy of small and medium-sized banks to raise short-term deposit rates amidst a general decline in rates is seen as a way to attract funds quickly while managing costs [5][6]