Heavyweight! Multiple bank deposit interest rates may be further lowered. Reporter | Deposit | Interest rate
On June 6th, Securities Times reporters verified from multiple sources that several state-owned banks will recently lower some deposit interest rates, involving Chinese yuan and US dollar currencies. Among them, the RMB current deposit interest rate may be lowered by 5 basis points, and some fixed deposit interest rates may be lowered by 10 basis points; US dollar fixed deposits have also been adjusted according to different maturities and sizes. The interest rate for 1-year US dollar fixed deposits above $50000 is not higher than 4.3%. Previously, some large banks had the highest interest rate for this type of deposit, which could reach around 5%.
In September last year, some state-owned and joint-stock banks took the lead in lowering the listing interest rates for RMB deposits, followed by some urban commercial banks and rural commercial banks. At present, the listed interest rates for RMB deposits executed by state-owned banks are current 0.25%, 2-year 2.15%, 3-year 2.6%, and 5-year 2.65%.
A person from the head office of a large bank confirmed to the reporter that the RMB deposit interest rate will be lowered by different degrees. As for the reduction of US dollar fixed deposit interest rates, some major banks have already implemented it on Monday this week, while others will implement it in the near future.
Wang Yifeng, Chief Financial Analyst at Everbright Securities, stated that since the beginning of 2023, the economic recovery has weakened, with low consumer and corporate investment willingness, weak demand for currency trading, and both corporate and residential deposits continuing to exhibit obvious characteristics of being fixed term. For top banks, due to a higher proportion of core liabilities, they are more significantly dragged down by the regularization of deposits. The current long-term interest rate level of core deposits is significantly higher than the market interest rate, and the necessity of adjusting under the background of deposit maturity has increased.
According to central bank data, as of the end of April, the proportion of fixed-term and other deposits in personal deposits has risen to 71%, an increase of nearly 3 percentage points from the end of 2022; The proportion of fixed-term and other deposits in corporate deposits has increased by nearly 68%, an increase of nearly 2 percentage points from the end of 2022.
Zou Lan, Director of the Monetary Policy Department of the People's Bank of China, previously stated that in the context of a significant decline in overall market interest rates, commercial banks adjust their deposit interest rates flexibly based on changes in market supply and demand, taking into account their own operating conditions. The adjustment range, pace, and timing of different banks will naturally vary, which is a normal phenomenon in the market-oriented environment of deposit interest rates.