Deposit interest rates are lowered!
2024-08-10
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Banks in many places followed suit and cut interest rates.
On August 8, Hangzhou Bank lowered the interest rate on RMB deposits. After the adjustment, the interest rate for current deposits is 0.15%, and the interest rates for time savings deposits of three months, six months, one year, two years, three years, and five years are 1.15%, 1.4%, 1.6%, 1.7%, 2%, and 2%, respectively.
Image source: Hangzhou Bank official website
Huizhou Rural Commercial Bank and Chengdu Rural Commercial Bank lowered their deposit rates on August 7 and August 6, respectively.
Since August, small and medium-sized banks in Zhejiang Province, Guangdong Province, Sichuan Province, Jilin Province, Shandong Province, Shanghai, Jiangsu Province and other places have successively lowered their deposit interest rates. Among them, August 1 was the peak period of the reduction. According to incomplete statistics from reporters, many banks including Shanghai Bank, Nanjing Bank, Suzhou Bank, Ningbo Bank, Jiangsu Baoying Rural Commercial Bank and others lowered their deposit interest rates on that day.
Some banks have fixed deposit rates of up to 2.4%
After this round of interest rate cuts, most banks' current deposit rates are 0.15%, and long-term deposit rates such as 3-year and 5-year deposits are below 2%. However, some banks such as Huizhou Rural Commercial Bank, Chengdu Rural Commercial Bank, and Ningbo Bank still have long-term fixed deposit rates exceeding 2%. Specifically, Huizhou Rural Commercial Bank's 3-year and 5-year fixed deposit rates are 2% and 2.4% respectively; Chengdu Rural Commercial Bank's 2-year term is 2%, and both 3-year and 5-year terms are 2.4%.
Judging from the extent of the reduction, the adjustment of medium- and long-term deposit interest rates is relatively large.
In addition, some banks' 3-year and 5-year deposit rates remain the same, such as Suzhou Bank and Nanjing Bank's 3-year and 5-year deposit rates are both 1.95%. Some banks also have inverted interest rates, such as Qilu Bank's 3-year personal deposit rate is 1.9%, 5-year is 1.85%; Jilin Bank's 3-year fixed deposit rate is 2.4%, 5-year is 2.2%.
Image source: Qilu Bank official website
Image source: Jilin Bank official website
The reporter noticed that some banks have also adjusted the interest rates of personal notice deposit products. For example, Suzhou Bank issued an announcement stating that due to business development needs, the bank's online personal notice deposit interest rates will be adjusted from August 15. Specifically, the one-day notice deposit is 0.9% and the seven-day notice deposit is 1.45%.
Image source: Suzhou Bank official website
Banks strengthen asset-liability management
Industry insiders said that the inverted deposit interest rate is mainly due to the banks' consideration of strengthening asset-liability management and interest rate risk management. As expectations of interest rate cuts increase, banks adjust deposit term premiums to reduce comprehensive liability costs.
In the view of Lou Feipeng, a researcher at the Postal Savings Bank of China, the inverted interest rates of deposits of different maturities and local deposit and loan rates are market behaviors adopted by different banks based on their own circumstances under the background of interest rate marketization. However, the inversion itself is abnormal and difficult to sustain for a long time.
Regarding the current deposit rate cut, Zeng Gang, director of the Shanghai Finance and Development Laboratory, said that as loan interest rates fall, banks will cut deposit rates to control costs, but the order and structure of the cuts will be different. "From a sequence point of view, large state-owned banks with a good customer base will cut first, and then small and medium-sized banks will follow suit according to their own circumstances. From a structural point of view, because medium- and long-term deposits generally account for a higher proportion of banks' liability structure, long-term deposit rates will be cut more, and the overall cost of funds will also fall more. However, for banks with a low proportion of medium- and long-term deposits, there may not be corresponding structural adjustments."
Tan Yiming, a fixed income analyst at Minsheng Securities, believes that the deposit rate cut covers a wide range. This round of adjustments not only covers demand and time deposits, but also includes "quasi-demand" deposits such as notice deposits and agreement deposits.
