Several small and medium-sized banks cut the listed interest rates for long-term fixed deposits

Gelonghui, March 10 — According to Securities Daily, in March, a number of banks are lowering their posted deposit rates. These banks are mainly regional small and medium-sized banks in Yunnan, Shandong, Xinjiang, and other areas. The affected deposit products include both short-term and long-term maturities, with a focus on long-term deposits. The rate cuts have reached up to 30 basis points. Unlike previous instances where large state-owned banks led the adjustments, small and medium-sized banks have been the first to change their deposit rates this year, with more frequent actions. Lou Feipeng, a researcher at China Postal Savings Bank, stated that since March, many small and medium-sized banks have lowered deposit rates, with some products experiencing inverted interest rates. This reflects banks’ response to net interest margin pressures, shifting from focusing on scale to controlling costs. When high-interest deposits mature and are re-priced, banks reduce their liability costs by lowering posted rates to ease profit pressures. Lou believes that the trend of declining deposit rates among small and medium-sized banks will continue, but the decrease may be smaller and the adjustments more refined.