Small and Medium-Sized Banks Ignite New "Rate-Cutting Wave" with Some Five-Year Rates Cut by up to 30 Basis Points

Gelonghui, March 13 — According to Jiemian, after the Spring Festival, as the peak of deposit gathering during the “good start” phase gradually subsides, China’s banking industry is entering a new round of deposit interest rate cuts. This round of reductions is led by city commercial banks, rural commercial banks, and village banks, with adjustments mostly ranging from 5 to 30 basis points. Some banks have cut their five-year fixed deposit rates by as much as 30 basis points.

On March 6, Xinjiang Bank announced that starting from the 10th, it would adjust its RMB deposit benchmark interest rates, with decreases in rates for savings accounts, fixed deposits, negotiated deposits, and notice deposits, with the largest cut being 15 basis points (BP). Additionally, Yunnan Yuanjiang North Bank Village Bank announced that from March 1, its five-year fixed deposit rate was reduced from 2.2% to 1.9%, a decrease of 30 basis points, making it one of the banks with the largest rate cuts in this round.

Notably, after the adjustments, some banks have experienced deposit rate “inversion.” Shanghai Huarui Bank’s three-year deposit rate of 2.00% is higher than the five-year rate of 1.95%. Heilongjiang Youyi Rural Commercial Bank’s three-year fixed deposit rate was adjusted to 1.75%, while the five-year rate is only 1.6%.