截图来自渝农商行网站① The Chongqing Agricultural Commercial Bank and the Bank of Beijing adjusted deposit listing interest rates on the same day, and the maximum reduction was 25 bps. ② After the reduction by the Chongqing Agricultural Commercial Bank, interest rates on time deposits will still be lower than some urban commercial banks and stock banks, which is the same as that of major state-owned banks. ③ The speed at which small and medium-sized banks are following up on this “wave of interest rate cuts” has accelerated markedly, and the industry has indicated that the efficiency of policy transmission is improving.
Following state-owned banks and stock banks, urban agricultural commercial banks have also begun a new round of deposit interest rate cuts.
October 22, Chongqing Agricultural Commercial Bank ( $CQRC BANK (03618.HK)$ ) According to the website, the new RMB deposit interest rate schedule will be implemented starting today. Among them, interest rates on time deposits will be uniformly lowered by 25 basis points. The reduction is basically the same as the previous biggest drop in state-owned banks and stock banks. At the same time, the current and notice deposit interest rates of the Chongqing Agricultural Commercial Bank have also been lowered by varying degrees.
Screenshot from Chongqing Agricultural Commercial Bank website
On the same day, $Bank Of Beijing (601169.SH)$ A new round of adjustments to the listed interest rates for RMB savings deposits was also announced. A Financial Services Association reporter noticed that since state-owned banks took the lead in starting a new round of deposit interest rate cuts on the 18th of this month, the “wave of interest rate cuts” covered state-owned banks, stock banks, and urban agricultural commercial banks in less than 3 working days.
Zhou Maohua, a macro researcher at the Financial Markets Department of Everbright Bank, pointed out in an interview with a reporter from the Financial Association today that compared to previous rounds, small and medium-sized banks cut deposit interest rates faster in this round, reflecting an increase in the transmission efficiency of domestic policies. At the same time, he said that to a certain extent, institutions also hope to push for the effects of lowering interest rates on deposits to be released as soon as possible.
This round of “interest rate cuts” has spread to urban agricultural commercial banks
The Chongqing Agricultural Commercial Bank revealed on its website today that it has lowered interest rates on demand deposits by 5 basis points to 0.10%; interest rates for three-month, half-year, one-year, two-year, three-year, and five-year term deposits have all been lowered by 25 basis points to 0.80%, 1.00%, 1.10%, 1.20%, 1.50%, and 1.55%; and the 7-day notice deposit interest rate has been reduced simultaneously by 25 basis points to 1.00%.
In addition, the Chongqing Agricultural Commercial Bank's zero deposit full deposit, zero deposit and interest rate deposit interest rates were also lowered by 25 bps, and the one-year, three-year, and five-year listing interest rates fell to 0.80%, 1.00%, and 1.00%, respectively.
On the same day, the Bank of Beijing announced on its website that it will implement a new interest rate for RMB savings deposits starting October 22. Interest rates on demand deposits will be reduced by 5 basis points to 0.10%, and listed interest rates for three-month, half-year, one-year, two-year, three-year, and five-year term deposits will be reduced by 25 basis points to 0.85%, 1.10%, 1.30%, 1.45%, 1.55%, and 1.60%; the seven-day notice that deposit interest rates will be reduced simultaneously by 25 basis points to 0.45%.
In addition, the Bank of Beijing also lowered the listed interest rates for zero deposit, zero withdrawal on full deposit, and interest on deposit by 25 basis points, and reduced the one-year, three-year, and five-year listing interest rates to 0.87%, 1.11%, and 1.20%, respectively.
Judging from the decline rate, the reduction of agricultural commercial banks in the two cities was consistent with the previous five major state-owned banks as well as stock banks such as China Merchants and Ping An. The biggest decline was 25 basis points.
It is worth mentioning that the reduced time deposit interest rates of the Chongqing Agricultural Commercial Bank are consistent with major state-owned banks such as ICBC, and are significantly lower than the urban commercial banks represented by the Bank of Beijing and some other stock banks. According to information, after this round of adjustments, Ping An Bank, Everbright Bank,$MINSHENG BANK (01988.HK)$The interest rate for a five-year full deposit and consolidated savings deposit at a stock bank is 1.6%.
Zhou Maohua pointed out that decisions to reduce deposit interest rates in different banking industries need to fully consider the deposit market situation, the institutions' own customer base, brand effects, debt capacity, and net interest spreads. He said that considering that the current business of various banks is still similar, it is not expected that there will be much difference in deposit interest rates.
The Chongqing Agricultural Commercial Bank revealed in this year's interim report that it will raise the level of refined management of active debt, arrange the size and structure of active debt flexibly, and promote the continuous reduction of debt costs. During the reporting period, in order to consolidate the cost advantage of debt and further optimize the balanced development of debt volume, price, and structure, the debt interest rate decreased by 8 BP compared to the end of the previous year, easing the downward pressure on some interest spreads.
The speed at which small and medium-sized banks are following up on “interest rate cuts” has accelerated markedly
10/18, $ICBC (01398.HK)$ ,$ABC (01288.HK)$, $BANK OF CHINA (03988.HK)$ , $CCB (00939.HK)$ Major state-owned banks have taken the initiative to lower deposit listing interest rates based on the current situation and their own business needs. At almost the same time, $CM BANK (03968.HK)$ Ping An Bank took the lead in following up with major banks lowering deposit listing interest rates on October 18 and 19.
On October 22, the Chongqing Agricultural Commercial Bank and the Bank of Beijing lowered their deposit listing interest rates on the same day, less than 3 working days between major state-owned banks and stock banks. A Financial Association reporter noticed that the pace of following up on this “wave of interest rate cuts” by small and medium-sized banks has clearly accelerated.
According to information, the previous “wave of interest rate cuts” was almost a week between the start of the major state-owned banks on July 25 and the Bank of Beijing followed the cuts on August 2.
Zhou Maohua pointed out that the follow-up of small and medium-sized banks is mainly due to the current structural imbalance in the deposit market. Banks generally face pressure on net interest spreads and a downward shift in market interest rates. Regarding the quick action, he said, “After the first few rounds of deposit interest rate 'step downgrades', institutions have accumulated reliable experience in the deposit interest rate repricing and reduction tool process, and savers and the market have fully absorbed and anticipated the deposit interest rate reduction.”
Edit/Rocky
