The Bank of China, the Industrial and Commercial Bank of China, the Agricultural Bank of China, and the Bank of Communications officially announced: From now on, the interest on a 100,000 yuan deposit for three years will be 750 yuan less
Recently, the banking industry has set off another "wave of interest rate cuts", and the last wave of interest rate adjustment in 2023 is quietly coming. A number of large banks have announced that from today, they will adjust the listed interest rates on deposits, bringing different degrees of interest rate changes to depositors.
On its official website, the Bank of China announced that it would cut the interest rate on RMB deposits on December 22, specifically, the interest rate for three-month, half-year and one-year deposits and withdrawals was reduced by 10 basis points, bringing the one-year interest rate down to 1.45%, the two-year rate by 20 basis points to 1.65%, and the three-year and five-year deposits by 25 basis points to 1.95% and 2.00%, respectively.
Industrial and Commercial Bank of China, Agricultural Bank of China, Bank of Communications and other major banks have caught up and announced similar adjustments on December 22, lowering the listed interest rate on deposits. Among them, the one-year interest rate has generally fallen to 1.45%, and the two-year, three-year and five-year tenors have also been lowered accordingly, ushering in a new round of challenges for the overall regulation and control of the banking system.
However, this is not the first time that a major state-owned bank has cut its deposit listing rate this year. On September 15 last year, the listed interest rates of major state-owned banks ushered in the first adjustment in nearly seven years, and then they were adjusted twice on June 8 and September 1 this year. And now, this is the third adjustment of the year, and it has only been 3 months since the last time.
At the same time, not only the listed interest rate has been adjusted, but the interest rate of some large banks has also changed accordingly. According to Blue Whale Finance, the highest drop in the interest rate of some large banks on large certificates of deposit has reached 30 basis points. For example, the mobile banking app of the Agricultural Bank of China shows that the interest rates on large-denomination certificates of deposit for 1 month, 3 months, 6 months, 1 year, 2 years, and 3 years have changed significantly in just one day.
According to the report of Beijing Daily, the reporter calculated an account: if you take 100,000 yuan and save it for 3 years, if the interest rate is reduced from 2.2% to 1.95%, the interest will be reduced by 750 yuan. This change has aroused the public's concern and thinking about the decline in deposit interest rates, and has also made residents more cautious in their choice of financial management methods.
Industry insiders believe that the main purpose of the interest rate cut is to ease the pressure on banks' net interest margins and provide more financing space for the real economy. Zhou Maohua, a macro researcher at the financial market department of Everbright Bank, pointed out that the interest rate cut will help ease the pressure on banks' net interest margins, further promote banks to make profits for the real economy, and help consumption and demand rebound.
Yang Haiping, a researcher at the Securities and Futures Research Institute of the Central University of Finance and Economics and the general manager of the Research and Development Department of the Bank of Inner Mongolia, pointed out that although the LPR did not move in December and the expected RRR cut was not realized, according to the judgment of the market, the RRR cut is still necessary in the near future, and there is room for it. He believes that the interest rate cut by large banks will lead other types of banks to follow suit, making more room for LPR cuts.
As for whether there is still room for the deposit rate to be lowered, industry insiders generally believe that it will depend on the mainland's economic growth data in the next stage and the supply and demand situation in the deposit market. In this context, it is recommended that residents should clarify their investment goals, assess their risk tolerance, and choose the right asset class in a more intelligent way when managing their finances. Changes in the wealth management market require investors to remain vigilant and make adaptive adjustments.
Although this round of interest rate cuts has put some pressure on banks' net interest margins, it has also provided more financing space for the real economy. As banks follow suit, we will see the impact of this round of rate cuts on the entire financial system and the economic boost. Investors need to stay tuned and adjust their financial strategies flexibly.