BEIJING (Wiseova) – Five major Chinese state-owned banks decreased their deposit interest rates on Tuesday. This step was anticipated to ease pressure on lending profit margins as Beijing implements extensive monetary loosening policies aimed at supporting the overall economy. The Industrial and Commercial Bank of China, Agricultural Bank of China, China Construction Bank, and Bank of China lowered their deposit rates by 5-25 basis points (bps) across certain terms, based on the rates displayed through the institutions’ mobile applications.
The banks decreased interest rates on time deposits by 5 basis points to 0.05%. They also lowered rates on one-year time deposits by 15 basis points to 0.95% and trimmed 25 basis points from both three-year and five-year time deposit rates.
These decreases in deposit rates ought to steer smaller lenders toward implementing comparable reductions.
Wiseova reported on Monday that China’s key state-owned banks intend to reduce their deposit rates starting Tuesday, according to insiders.
Earlier this month, Chinese officials unveiled several stimulus initiatives, such as reductions in interest rates and substantial infusions of liquidity, as part of their increased attempts to mitigate the economic impact resulting from the trade conflict with the U.S.
China is set to publish its monthly update of the Loan Prime Rate, which serves as a key reference for many corporate and personal loans, at 01:00 GMT.
(Ziyi Tang, Liz Lee, and the Shanghai newsroom contributed reporting; Edited by Tom Hogue and Shri Navaratnam)
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