The pace of deposit rate cuts for small and medium-sized banks accelerates

Ask AI · What are the main drivers behind the accelerated downward adjustment of deposit interest rates at small and medium-sized banks?

【Accelerated pace of deposit interest rate cuts at small and medium-sized banks】 Caixin Media, April 7—Since April, many city commercial banks and rural commercial banks have repeatedly reduced deposit interest rates. Specifically, the range of interest rate adjustments covers mainstream products such as time deposits and notice deposits. The amount of the rate cuts varies from a few basis points to several dozen basis points, and the pace of the cuts has clearly accelerated. In recent years, the deposit cost ratio of regional small and medium-sized banks has declined year by year, and the net interest margin has gradually stabilized. Some banks’ 2025 deposit cost ratios have already fallen into the “teens” range, and the year-over-year decline has further widened. Several industry insiders analyzed that, with the banking sector’s net interest margin currently at a historical low, future deposit interest rate adjustments may continue in a pattern of small, gradual changes with differentiation in structure, while the interest rate center of gravity will still steadily move downward. (Securities Times)