Following the asymmetric reduction of loan quotation rate (LPR) in August
deposit interest rate has also been adjusted
Reporter learned on September 15 that
3 Workers and Agricultural Construction The deposit interest rate of the four major banks will be lowered from now on
This is another reduction since the personal deposit interest rate in April this year
has been lowered
deposit interest rates will be lowered from now on
html downward in April this year 2
deposit interest rates for different terms have been lowered. The listed annual interest rates announced by the Construction Bank APP show that on September 15, the 3-month, 6-month, 1-year, 2-year, and 5-year fixed deposit interest rates were 1.25%, 1.45%, 1.65%, 2.15%, and 2.65%, respectively, all down 10 basis points; the 3-year fixed deposit interest rate was 2.60%, down 15 basis points.
According to the relevant information of Bank of China , Agricultural Bank of China, and Industrial and Commercial Bank of China , on September 15, the annual interest rates of 3-month, 6-month, 1-year, 2-year and 5-year fixed deposits were all lowered by 10 basis points; the annual interest rates of 3-year fixed deposits were lowered by 15 basis points.
Image source: Industrial and Commercial Bank of China website
Market insiders believe that considering that the 1-year LPR has been lowered by 5 basis points recently and the 10-year treasury bond yield has also declined to a certain extent, it is necessary and there is room for 4-year interest rates for each term deposit and large-denomination certificates of deposit -year.
In April this year, People's Bank of China guided the interest rate self-discipline mechanism to establish a market-oriented adjustment mechanism for deposit interest rates. The People's Bank of China has made it clear that the members of the self-discipline mechanism should reasonably adjust the deposit interest rate level by referring to the bond market interest rates represented by the 10-year treasury bond yield and the loan market interest rates represented by the 1-year LPR. "The People's Bank of China provides appropriate incentives for financial institutions that adjust deposit interest rates in a timely and efficient manner," said the People's Bank of China.
It is worth noting that this is another reduction in bank deposit interest rates since April this year. In April this year, the reporter's investigation learned that the annual interest rates of two-year and three-year fixed deposits of many banks were cut by 10 basis points.
Everbright Securities chief analyst Wang Yifeng believes that deposit interest rates should not deviate from the operating trend of broad-spectrum interest rates such as central bill interest rates, benchmark interest rates, and interbank lending rates. "In the process of overall downward broad-spectrum interest rates, deposit interest rates should also show a trend downward characteristic."
constitutes a substantial benefit to the banking sector
listed banks' semi-annual report shows that the industry's net interest margin is in a downward channel as a whole. Industry experts believe that as the asset-side yields of commercial banks continue to decline, the decline in interest rates on the liability side is also an inevitable trend. The cut in deposit interest rates will help alleviate the pressure of narrowing the interest rate spread .
Some experts also said that a lower deposit interest rate will be beneficial to the banking sector. Liao Zhiming, chief analyst of banking at China Merchants Securities, said that the cut in deposit interest rates poses a substantial benefit to the banking sector and also sends a signal that interest rate spreads will not continue to be greatly unilaterally compressed, which is conducive to stabilizing bank profitability.
Postal Savings Bank President Liu Jianjun said that in terms of liabilities, we must continue to promote the decline in liabilities, especially to increase the proportion of current deposits, increase the assessment and driving force of wealth management, and increase the proportion of current deposits through wealth management, and continue to reduce the scale and interest rates of medium and long-term deposits.
People's Bank of China Vice President Liu Guoqiang said, "In the next step, we must further play the guiding role of loan market quotation interest rate and the role of the market-oriented adjustment mechanism of deposit interest rate, guide financial institutions to transmit the effect of declining deposit interest rate to the loan end, and reduce the cost of corporate financing and personal credit."
Editor Liu Wanxin
Source Newsfang
