Wang Xin, the Director of the Monetary Policy Research Bureau of the Central Bank, mentioned when discussing the specific considerations for implementing the next phase of monetary policy that while guiding interest rates downward, it is also necessary to balance support for the real economy and maintain the stability and health of the Banks. The key to this is to strengthen the execution of interest rate policies and ensure smooth policy transmission. Wang Xin noted that recently, the net interest margin of commercial Banks has continued to narrow, which generally conforms to objective laws. Due to the different repricing cycles of deposit and loan rates, during the phase of declining interest rates, the net interest margin typically tends to narrow. However, there is also an important reason in our country, which is that the Banks display irrational behavior on both the deposit and loan sides simultaneously. Some large clients have a strong bargaining power, leading to deviations in the execution of interest rate policies, where loan rates decrease quickly, while deposit rates remain unchanged. This not only disrupts the market competition order and causes capital to accumulate and arbitrage but also affects the stable operation of the Banks, restricting flexible adjustments of monetary policy.