many banks: lower deposit rates
2024-09-17
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this article is transferred from [china economic net];
recently, ningwu ruidu village bank, laibin xiangzhou changjiang village bank, xincheng county rural credit cooperative union, mengyin qifeng village bank, etc.many rural financial institutions lowered their personal rmb deposit rates, with some institutions reducing their rates by as much as 55 basis points.
rural financial institutions cut deposit rates
shanxi ningwu ruidu village bank announced that it will adjust deposit interest rates from september 15. after the adjustment, the upper limit of the interest rate for demand deposits is 0.2%, and the upper limits of the interest rates for 3-month, 6-month, 1-year, 2-year, 3-year, and 5-year fixed deposits are 1.45%, 1.55%, 1.80%, 2.10%, 2.40%, and 2.55%, respectively. among them, the 2-year and 3-year fixed deposits have the largest reduction of 55 basis points, the 5-year has been reduced by 45 basis points, and the other terms have been reduced by 10 to 25 basis points.
image source: ningwu ruidu rural bank wechat
guangxi laibin xiangzhou changjiang rural bank announced that it will adjust the rmb deposit interest rate from september 14. the adjusted interest rate is 0.25% for demand deposits, 1.65% for 3-month, 1.85% for 6-month, 1-year, 2-year, 3-year and 5-year fixed deposit interest rates, 2.35% for 2.7% and 2.7% for 3-month, 1.85% for 2.05% for 2.35% for 2.7% and 2.7% for 5-year fixed deposits. in this adjustment, the demand deposit and 3-month fixed deposit interest rates remain the same as the previous period, while the 3-year and 5-year fixed deposit interest rates are both reduced by 50 basis points.
it is worth mentioning thatsince the lpr was lowered on july 22, some banks have adjusted their deposit rates for the second time.taking the xincheng county rural credit cooperative union in guangxi as an example, it lowered the rmb deposit interest rate for the first time on august 2, with an adjustment range of 5 to 20 basis points. on september 12, the xincheng county rural credit cooperative union made another adjustment, lowering the interest rate of lump-sum deposits of one year or more by 10 to 30 basis points.
facing the low interest rate environment
in the view of zeng gang, director of the shanghai finance and development laboratory, the current round of rural financial institutions lowering deposit rates is mainly to follow up on this round of lpr reduction in order to control liability costs and ease net interest margin pressure.
"a reduction in lpr will push down bank loan interest rates. the income on the loan side determines the deposit pricing, so a reduction in deposit interest rates is inevitable. from a sequence perspective, large state-owned banks with a better customer base will reduce their rates first, and then small and medium-sized banks will follow suit based on their own circumstances. from a structural perspective, because medium- and long-term deposits generally account for a higher proportion of banks' liability structure, long-term deposit interest rates will be reduced more, and the overall cost of funds will also fall more. however, for banks where the proportion of medium- and long-term deposits is not high, there may not be corresponding structural adjustments." zeng gang said.
dong ximiao, chief researcher at ccb, said that the two reductions in lpr this year and the continued efforts of banks to reduce fees and give concessions to the real economy have undoubtedly put pressure on the profit level and net interest margin of commercial banks.lowering deposit rates and reducing liability costs have become the options for commercial banks。
industry insiders believe thatthe continued decline in the central interest rate of the financial market can reduce the financing cost of the real economyat the same time, this also sends an important signal to the public: it is necessary to face up to and accept the reality of falling interest rates. in this context, not only bank deposit rates, but also the yields of various asset management products including bank wealth management will also decline. therefore, investors need to rationally understand the current low interest rate market environment and make investment choices based on their own risk tolerance and return preferences.
