On today at 20:00, SanXiang Bank will adjust the interest rates of some deposit products. Previously, Hengfeng Bank and Bank of Ningbo had lowered their deposit listing rates. In order to reduce financing costs and maintain the stability of bank net interest margins, it is expected that the downward adjustment of deposit rates will continue within the year, but the degree of adjustment will be slightly narrower.
Recently, the continuous decline in deposit rates by many banks has attracted attention, which means that the wave of lowering deposit rates is still continuing. After many small and medium-sized banks adjusted their deposit rates in June, many banks, including Bank of Ningbo, Hengfeng Bank, and SanXiang Bank, continued to lower interest rates at the beginning of July.
Industry insiders believe that in order to reduce financing costs, deposit rates still need to be further reduced, which will also open up space for LPR quotes downward. Faced with the pressure of net interest margins, the pace of banks' adjustment of deposit rates has not stopped. However, some experts also believe that with the continuous release of macroeconomic policy effects and the steady recovery and improvement of the economy and prices, the degree of deposit rate reduction this year will be narrowed.
Many banks have lowered their deposit rates.
On July 2nd, the customer service of SanXiang Bank stated that it would adjust the interest rates of some deposit products at 20:00 today, involving 3-year and 5-year fixed-term products, which will be lowered from 3% and 3.1% to 2.9% and 3%, respectively, down by 1 bp. 'The interest rate of your existing deposit product is not affected, but if it is automatically renewed, it will be executed at the latest interest rate in the next cycle.' SanXiang Bank's customer service told CaiLian News.
Recently, Hengfeng Bank's RMB deposit quoted rates have shown a downward trend. The interest rates for personal and corporate notice deposits have been lowered. Compared with the last quoted interest rates adjusted on September 1, 2023, the 1-day notice deposit interest rate has been reduced from 0.55% to 0.35%, and the 7-day notice deposit interest rate has been reduced from 1.1% to 0.9%, both down by 20 basis points. In addition, the three-year period of the intelligent deposit rate has been reduced to 2.65%, down 10 basis points from before.
Bank of Ningbo, which has also lowered its deposit rate, updated its RMB deposit quoted rates on its official website yesterday. 'Taking a deposit product of 200,000 yuan as an example, the current one-year rate is 2.05%, the two-year rate is 2.35%, and the three-year rate is 2.5%, all of which have been lowered by 1 bp,' said a Bank of Ningbo official to Cailian News today.
Previously, Anshan Bank also stated that it would lower the interest rates of zero-saving and whole-saving deposit products, and the degree of reduction is relatively large. Among them, the five-year period of zero-saving deposit was lowered by 50bp to 2.35%; the two-year period of whole-saving deposit was lowered by 15 basis points to 2.35%; In the three-year period of the whole-saving deposit product, the deposit amount below 50,000 yuan was lowered by 20 bp to 2.5%, and the deposit amount above 50,000 yuan was lowered by 10 bp to 2.6%; and the five-year period of the whole-saving deposit was lowered by 30 bp to 2.4%.
Although banks have lowered deposit rates many times, the pressure on net interest margins in the industry has not eased. Therefore, the market expects that the trend of deposit rate reduction will continue, but the degree of reduction will be slightly narrowed.
'The reduction of deposit rates will continue this year, and deposits will be transferred to wealth management products. Funds will flow from major banks to non-banks, and the liquidity of major banks will be relatively tight. The liability structure of banks will change, deposits will be transferred to bonds, and commercial banks will need to increase their excess reserve ratios to cope with liquidity risks.' According to research reports from China Galaxy Securities.
Wen Bin, chief economist of Minsheng Bank, told CaiLian News that in order to reduce financing costs and maintain stable net interest margins of banks, deposit rates still need to be further reduced. 'It is expected that the downward adjustment of deposit rates will open up a certain space for LPR quotes in the mid-year to the third quarter.'
Ming Ming, chief economist at CITIC Securities, said that there is a high probability of a new round of deposit rate cuts in the third quarter, but the degree of deposit rate cuts depends on various factors, including bank funding costs, deposit market competition, and regulatory policies. However, considering that the deposit rates of some banks are already low, and the phenomenon of deposit migration is quite obvious, the space for further reduction may be narrower than in the first half of the year.
In the view of Zhou Maohua, a financial researcher at Everbright Bank's Macro Market Department, there is still a certain imbalance in the deposit market, and some banks' funding costs are rising. At the same time, the pressure on banks' net interest margins is still high, so it is not ruled out that there will be a new round of deposit rate cuts in the future. With the continuous release of macroeconomic policy effects and the steady recovery and improvement of the economy and prices, the supply and demand of the deposit market will gradually return to normal, and the degree of deposit rate reduction this year is expected to be lower than last year.
Recently, the continuous decline in deposit rates by many banks has attracted attention, which means that the wave of lowering deposit rates is still continuing. After many small and medium-sized banks adjusted their deposit rates in June, many banks, including Bank of Ningbo, Hengfeng Bank, and SanXiang Bank, continued to lower interest rates at the beginning of July.