At the beginning of April, a number of small and medium-sized banks announced cuts to the posted deposit rates. The cut ranges from 5 to 30 basis points.
Xiamen Bank’s announcement stated that effective from April 1, the posted rates of multiple deposit products will be adjusted. After the adjustment, the annualized interest rates for one-year, three-year, and five-year term deposits will be 1.2%, 1.4%, and 1.4% respectively, which represent declines of 10, 20, and 20 basis points compared with before the adjustment. Meanwhile, the bank’s notice of deposit (one day) stated that the annualized interest rate was lowered by 5 basis points to 0.65%.
Jilin Bank only lowered the posted interest rate of one term deposit product. Effective from April 1, the annualized interest rate of its lump-sum lump-withdrawal three-year term deposit was lowered from 1.75% to 1.7%, a cut of 5 basis points. However, it still shows an “inversion” of 10 basis points compared with the bank’s five-year term deposit annualized interest rate of 1.6%.
Fujian Haixia Bank, on the other hand, adjusted the posted interest rates for RMB agreed deposits and notice deposits. Starting April 1, the bank’s agreed deposit rate (Fujian Province) was lowered by 5 basis points to 0.6%; the one-day and seven-day notice deposit rates (Fujian Province) were lowered by 10 and 20 basis points to 0.6% and 0.9%, respectively.
In addition to city commercial banks, a number of rural commercial banks and township banks have also joined this round of rate cuts, including Hubei Jiangling Rural Commercial Bank, Jilin Hunjiang Rural Commercial Bank, Hui County Zhujiang Township Bank, and others.
Among them, Hui County Zhujiang Township Bank lowered the interest rates of one-year, two-year, three-year, and five-year products for deposits that are taken all at once upon maturity. Taking the one-year term as an example, before the adjustment the annualized interest rate for deposits below RMB 10,000 was 1.36%, and for deposits above RMB 10,000 it was 1.51%. After the adjustment, both are 1.21%, with the maximum decline reaching 30 basis points.
“After ‘Open for Red Packets’ ends, the banking industry needs to refocus on managing liability costs. At this time, choosing to lower deposit rates can reduce deposit costs and optimize the liability maturity structure.” Wang Pengbo, chief analyst at Boto Consulting, told The Securities Times reporter.
Dong Shimiao, chief economist of Ronglian and deputy director of the Shanghai Finance and Development Laboratory, also pointed out that in order to absorb deposits and stabilize liabilities, small and medium-sized banks may raise deposit interest rates in a phased manner at key time points such as “Open for Red Packets” to attract new funds and retain existing customers. This is also a direct approach to respond to deposit competition and complete performance evaluations.
Judging from the recent annual reports released by multiple listed banks, liability-cost management has become a key measure for the industry to “stabilize the net interest margin.” It has effectively helped the decline in the net interest margin to level off. In a research note released by Ma Tingting’s team at Guotai Huarong Securities, it was noted that benefited from a narrowing decline in the net interest margin and a rebound in fee income, the year-on-year growth rate of listed banks’ performance in 2025 showed marginal improvement.
Taking China CITIC Bank as an example, the bank’s chairman Fang Ying at an earnings meeting said: “Liability business volume and pricing balanced management is one of the major operating highlights of 2025. It helps our liability costs truly build a ‘broad buffering belt’ against the impact of low net interest margins.”
He mentioned that in 2025, China CITIC Bank’s “controlling high-cost liabilities” was even more forceful and effective. The combined proportion of three-year deposits, structured deposits, and agreed deposits is below 32%. A relatively reasonable liability structure brings a clear advantage in funding costs.
This round of deposit-rate cuts by small and medium-sized banks is also concentrated on high-cost products such as three-year and five-year terms and agreed deposits. “We expect more small and medium-sized banks to follow up by lowering the annualized interest rates of high-cost deposit products.” Wang Pengbo said.
Dong Shimiao believes that for banks to achieve long-term and sound development, the key lies in strategically getting rid of path dependency on short-term scale-chasing. Through reforms of incentive and restraint mechanisms, this strategy should be transmitted to the grassroots level, turning “Open for Red Packets” from a short-term marketing campaign into a natural starting point for serving customers throughout the year and creating value, ultimately achieving a dynamic balance among scale, efficiency, and quality.
多くの中小銀行が金利を引き下げ、主に高コスト商品に集中している
The Securities Times reporter Lin Yu
At the beginning of April, a number of small and medium-sized banks announced cuts to the posted deposit rates. The cut ranges from 5 to 30 basis points.
Xiamen Bank’s announcement stated that effective from April 1, the posted rates of multiple deposit products will be adjusted. After the adjustment, the annualized interest rates for one-year, three-year, and five-year term deposits will be 1.2%, 1.4%, and 1.4% respectively, which represent declines of 10, 20, and 20 basis points compared with before the adjustment. Meanwhile, the bank’s notice of deposit (one day) stated that the annualized interest rate was lowered by 5 basis points to 0.65%.
Jilin Bank only lowered the posted interest rate of one term deposit product. Effective from April 1, the annualized interest rate of its lump-sum lump-withdrawal three-year term deposit was lowered from 1.75% to 1.7%, a cut of 5 basis points. However, it still shows an “inversion” of 10 basis points compared with the bank’s five-year term deposit annualized interest rate of 1.6%.
Fujian Haixia Bank, on the other hand, adjusted the posted interest rates for RMB agreed deposits and notice deposits. Starting April 1, the bank’s agreed deposit rate (Fujian Province) was lowered by 5 basis points to 0.6%; the one-day and seven-day notice deposit rates (Fujian Province) were lowered by 10 and 20 basis points to 0.6% and 0.9%, respectively.
In addition to city commercial banks, a number of rural commercial banks and township banks have also joined this round of rate cuts, including Hubei Jiangling Rural Commercial Bank, Jilin Hunjiang Rural Commercial Bank, Hui County Zhujiang Township Bank, and others.
Among them, Hui County Zhujiang Township Bank lowered the interest rates of one-year, two-year, three-year, and five-year products for deposits that are taken all at once upon maturity. Taking the one-year term as an example, before the adjustment the annualized interest rate for deposits below RMB 10,000 was 1.36%, and for deposits above RMB 10,000 it was 1.51%. After the adjustment, both are 1.21%, with the maximum decline reaching 30 basis points.
“After ‘Open for Red Packets’ ends, the banking industry needs to refocus on managing liability costs. At this time, choosing to lower deposit rates can reduce deposit costs and optimize the liability maturity structure.” Wang Pengbo, chief analyst at Boto Consulting, told The Securities Times reporter.
Dong Shimiao, chief economist of Ronglian and deputy director of the Shanghai Finance and Development Laboratory, also pointed out that in order to absorb deposits and stabilize liabilities, small and medium-sized banks may raise deposit interest rates in a phased manner at key time points such as “Open for Red Packets” to attract new funds and retain existing customers. This is also a direct approach to respond to deposit competition and complete performance evaluations.
Judging from the recent annual reports released by multiple listed banks, liability-cost management has become a key measure for the industry to “stabilize the net interest margin.” It has effectively helped the decline in the net interest margin to level off. In a research note released by Ma Tingting’s team at Guotai Huarong Securities, it was noted that benefited from a narrowing decline in the net interest margin and a rebound in fee income, the year-on-year growth rate of listed banks’ performance in 2025 showed marginal improvement.
Taking China CITIC Bank as an example, the bank’s chairman Fang Ying at an earnings meeting said: “Liability business volume and pricing balanced management is one of the major operating highlights of 2025. It helps our liability costs truly build a ‘broad buffering belt’ against the impact of low net interest margins.”
He mentioned that in 2025, China CITIC Bank’s “controlling high-cost liabilities” was even more forceful and effective. The combined proportion of three-year deposits, structured deposits, and agreed deposits is below 32%. A relatively reasonable liability structure brings a clear advantage in funding costs.
This round of deposit-rate cuts by small and medium-sized banks is also concentrated on high-cost products such as three-year and five-year terms and agreed deposits. “We expect more small and medium-sized banks to follow up by lowering the annualized interest rates of high-cost deposit products.” Wang Pengbo said.
Dong Shimiao believes that for banks to achieve long-term and sound development, the key lies in strategically getting rid of path dependency on short-term scale-chasing. Through reforms of incentive and restraint mechanisms, this strategy should be transmitted to the grassroots level, turning “Open for Red Packets” from a short-term marketing campaign into a natural starting point for serving customers throughout the year and creating value, ultimately achieving a dynamic balance among scale, efficiency, and quality.
(Editor: Qian Xiaorui)
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