Edited by: Du Yu
Towards the end of the year, banks ushered in the third round of "interest rate cuts" in 2023, and many banks adjusted their deposit listing rates from today.
The Bank of China lowered the interest rate on RMB deposits
On December 22, according to the official website of the Bank of China, the bank lowered the interest rate on RMB deposits on December 22, of which the interest rates for three-month, half-year and one-year fixed deposits were reduced by 10 basis points, the one-year interest rate was reduced to 1.45%, the two-year interest rate was reduced by 20 basis points to 1.65%, and the three-year and five-year deposits were reduced by 25 basis points to 1.95% and 2.00% respectively.
Image source: Bank of China official website
ICBC lowered the interest rate on RMB deposits
On December 22, according to the official website of the Industrial and Commercial Bank of China, the bank lowered the RMB deposit interest rate on December 22, of which the interest rate on fixed deposits and lump sum deposits was reduced by 10 basis points for three-month, half-year and one-year periods, the one-year interest rate was reduced to 1.45%, the two-year interest rate was reduced by 20 basis points to 1.65%, and the three-year and five-year periods were both reduced by 25 basis points to 1.95% and 2.00% respectively. The interest rates on zero deposits, lump sum deposits and principal deposits will be lowered by 10 basis points, and the listed interest rates on call deposits will be reduced by 20 basis points.
Image source: ICBC official website
The Agricultural Bank of China announced a reduction in the interest rate on RMB deposits
On December 22, according to the official website of the Agricultural Bank of China, the Agricultural Bank of China lowered the RMB deposit interest rate on December 22, of which the interest rate of the fixed deposit and lump sum deposit was reduced by 10 basis points for three-month, half-year and one-year deposits, the one-year interest rate was reduced to 1.45%, the two-year interest rate was reduced by 20 basis points to 1.65%, and the three-year and five-year deposits were both reduced by 25 basis points to 1.95% and 2.00% respectively. The interest rates on zero deposits, lump sum deposits and principal deposits will be lowered by 10 basis points, and the listed interest rates on call deposits will be reduced by 20 basis points.
Image source: Agricultural Bank of China's official website
Bank of Communications announced a cut in the RMB deposit rate
On December 22, according to the official website of Bank of Communications, the bank lowered the interest rate on RMB deposits on December 22, including 10 basis points for three-month, half-year and one-year fixed deposits and withdrawals, with the one-year interest rate falling to 1.45%, the two-year interest rate falling by 20 basis points to 1.65%, and the three-year and five-year terms both reducing by 25 basis points to 1.95% and 2.00% respectively.
Image source: Bank of Communications official website
According to the Blue Whale Finance on December 22, the listed interest rate of large banks was lowered today, and the interest rate of some banks' large-amount certificates of deposit was also adjusted, of which the highest decline reached 30BP. For example, on December 21, the mobile banking app of the Agricultural Bank of China showed that the interest rates on large-amount certificates of deposit for 1 month, 3 months, 6 months, 1 year, 2 years and 3 years were 1.6%, 1.6%, 1.8%, 1.9%, 2.15% and 2.65% respectively. On December 22, the bank's mobile banking app showed that the interest rates on 1-month, 3-month, 6-month, 1-year, 2-year and 3-year large certificates of deposit were 1.5%, 1.5%, 1.7%, 1.8%, 1.9% and 2.35% respectively. 10BP for 1 year or less, 25BP for 2 years, and 30BP for 3 years.
According to Beijing Daily, the reporter calculated the account and took 100,000 yuan to save for 3 years, if the interest rate is reduced from 2.2% to 1.95%, the accumulated interest due after the interest rate is lowered will be reduced by 750 yuan.
This is not the first time that a major state-owned bank has lowered the interest rate on deposits this year.
As early as September 15 last year, the listed interest rate of state-owned banks, which had been stable for seven years, ushered in the first adjustment, and then adjusted again on June 8 and September 1 this year. This is also the third time that a state-owned bank has lowered the listed interest rate this year, more than three months after the last adjustment.
The CITIC Securities research report pointed out that a number of state-owned banks will cut the listed interest rate on deposits on December 22. We believe that small and medium-sized banks may also follow suit in the future, but the time point may be after the year, or not as large as large banks. According to our calculations, the reduction of deposit interest rates will reduce the average deposit cost of commercial banks by about 3-5bps, which will help alleviate the pressure on banks' net interest margins, and in addition, the probability of LPR quotation reduction has also increased.
Zhou Maohua, a macro researcher at the financial market department of Everbright Bank, pointed out to the reporter of "Daily Economic News" that the main reason for the reduction of deposit interest rates is that some banks make full use of the market-oriented adjustment mechanism of deposit interest rates to ease the pressure on net interest margins and expand space for banks to further benefit the real economy. "The reduction in deposit rates will help alleviate the pressure on banks' net interest margins, promote banks to further benefit the real economy, and help consumption and demand rebound. ”
Zhou Maohua said that combined with the previous experience of reducing deposits, China is expected to adopt large, medium and small banks to follow up and reduce deposit interest rates to ensure a stable and orderly deposit market.
Yang Haiping, a researcher at the Securities and Futures Research Institute of the Central University of Finance and Economics and general manager of the Research and Development Department of the Bank of Inner Mongolia, pointed out to reporters that the background of the interest rate cut was that the LPR was not moved in December, and the expected RRR cut was not realized. "However, according to the judgment of the market, it is still necessary to cut the reserve requirement ratio and interest rates in the near future, and there is room for it. ”
It is worth noting that the end of the year is approaching, which is a critical moment for commercial banks to attract deposits, and some small and medium-sized banks have even raised interest rates to absorb deposits. Yang Haiping pointed out that the interest rate cut by the big state-owned banks is unexpected and reasonable, "commercial banks still want to maintain a reasonable net interest margin, and the only way to do this is to lower the deposit interest rate first." ”
Yang Haiping judged that the reduction of deposit interest rates by large banks will also lead other types of banks such as joint-stock banks and small and medium-sized banks to follow suit, "This round of reduction actually makes room for LPR reduction." ”
As for whether there is still room for the deposit interest rate to be lowered, Zhou Maohua said that from the trend point of view, as well as the current market interest rate, the income of wealth management products and the interest rate of 10-year treasury bonds, there is still some room for adjustment of bank deposit interest rate. "The subsequent reduction of bank deposit interest rates depends more on the supply and demand conditions of the deposit market, the assets and liabilities of various types and banks, the pressure on net interest margins and operations. ”
Yang Haiping also pointed out that if it is necessary to reduce the financing cost of the real economy and maintain the net interest margin of commercial banks, the only way for commercial banks to reduce the interest rate on the deposit side is to do so. "Whether there is still room for the deposit rate to be lowered in the future depends on the next stage of economic growth data on the mainland. ”
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The daily economic news integrates the official website of the Bank of China, the official website of the Industrial and Commercial Bank of China, the official website of the Bank of Communications, the daily economic news (reporter Zhao Jingzhi Li Yuwen), Beijing Daily, and CITIC Securities Research Report
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