For the second time this year! The fundamental reason why 11 banks cut deposit interest rates is that [Attach the change of deposit interest rate over the years]

The interest rate cut by banks will have various impacts on the economy, including Promote economic growth, promote the real estate market, improve the performance of the stock market, and reduce borrowing costs Etc.

As of September 1, 11 banks have updated the RMB deposit reference interest rate table on the official website and lowered the listing interest rate of medium and long-term fixed deposits. In large state-owned banks, ABC, ICBC The listed interest rate of 1-year fixed deposit was lowered by 10 basis points to 1.55%, the 2-year fixed deposit was lowered by 20 basis points to 1.85%, and the 3-year and 5-year fixed deposit were lowered by 25 basis points to 2.2% and 2.25% respectively. In joint-stock banks, Industrial Bank, CITIC Bank, Ping An Bank, China Everbright Bank, China Merchants Bank, Zheshang Bank, Bohai Bank, Hengfeng Bank, and Minsheng Bank They have also been adjusted.

This adjustment is the second time that the bank has lowered the deposit interest rate. In June, large state-owned banks, national joint-stock banks, urban commercial banks, agricultural and commercial banks and other small and medium-sized banks have successively adjusted the deposit interest rate. Compared with the two rounds of adjustment, it is found that this time the deposit interest rate has decreased by about 5 basis points more than the previous round.

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The industry analysis believes that the narrowing of bank interest margin is the direct reason for the current round of deposit interest rate reduction, and the interest rate adjustment also reserves space for the subsequent adjustment of stock housing loans.

From the perspective of deposit interest rate, since 1994, China's benchmark deposit interest rate has experienced a high return and is now at a historical point, which has been stable for more than seven years. According to the People's Bank of China, various indicators of China's benchmark deposit interest rate in February 2023 are: demand deposit interest rate 0.35%, three-month fixed deposit interest rate 1.1%, one-year fixed deposit interest rate 1.5%, three-year fixed deposit interest rate 2.75%, and five-year fixed deposit interest rate 4.75%. A stable interest rate will help the market develop steadily and is more suitable for China's economic development model and financial market conditions.

From the perspective of loan interest rate, since 1994, China's benchmark loan interest rate has the same trend of change as the benchmark deposit interest rate. At present, China's loan interest rate has been at a stable level for more than seven years, and is the lowest since 1994. According to the People's Bank of China, in February 2023, various indicators of China's benchmark loan interest rate are: short-term loan interest rate within one year 4.35%, medium and long-term loan interest rate between one and five years 4.75%, personal housing provident fund loan interest rate above five years 3.1%, and personal housing provident fund loan interest rate below five years 2.6%.

Huang Dazhi, a researcher of Xingtu Financial Research Institute, believes that from a macroeconomic perspective, lowering the deposit interest rate is conducive to guiding residents to reduce savings and encourage consumption. At the same time, by reducing the cost of bank liabilities, we can guide the decline of financing costs, thus reducing the financing costs of the real economy. For the capital market, it is also conducive to the performance of the capital market directly or indirectly. In terms of the banking system, it is conducive to improving the profitability of banks and boosting their performance.

Prospective Economist APP Information Group

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