Many banks follow up to reduce the pressure on deposit interest rate spreads and are expected to ease

　　Wang Fangyuan, trainee reporter Chen Lu

　　Following the announcement of a number of large state-owned banks on September 15 to lower the RMB deposit interest rate, a reporter from China Securities Journal learned through investigation that some joint-stock banks and city commercial banks have lowered their deposit interest rates.

　　Industry insiders believe that this move may ease the pressure on bank interest margins.

In addition, lowering the deposit interest rate will help to increase market risk appetite to a certain extent, which is positive for the bond and A-share markets.

　　Some city commercial banks follow up

　　After the big state-owned bank lowered the deposit rate on September 15, on September 16, among the 9 joint-stock banks listed on the A-share market, there were Ping An Bank, Shanghai Pudong Development Bank, Huaxia Bank, Minsheng Bank, China Everbright Bank, and China CITIC Bank. Its official website announced a cut in deposit rates.

　　China Merchants Bank has followed up on September 15 to cut the deposit interest rate, and the interest rate of each term is consistent with that of most large state-owned banks.

Among the unlisted joint-stock banks, China Guangfa Bank and Hengfeng Bank also followed suit and lowered deposit rates.

　　A reporter from China Securities Journal found that, except for the slightly higher interest rate of Hengfeng Bank, the adjusted deposit listing interest rates of many joint-stock banks were basically the same.

The one-year time deposit rate is mostly 1.85%, the two-year time deposit rate is between 2.15% and 2.4%, and the three-year and five-year time deposit rates are mostly 2.65% and 2.7%.

　　Some city commercial banks have not yet issued relevant announcements, but the deposit interest rates of branches in some regions have actually been lowered.

Taking Bank of Nanjing as an example, a staff member of a sub-branch of Nanjing Branch of the Bank said: "The Nanjing Branch of Bank of Nanjing has adjusted the five-year fixed deposit interest rate this time, from the previous 3.75% to 3.65%, and the adjustment date is September 16. The one-year, two-year, and three-year fixed deposit interest rates have not been adjusted for the time being, which are 2.1%, 2.6%, and 3.25%, respectively.” Overall, the bank’s adjusted deposit interest rate is higher than that of state-owned banks and shares. Row.

　　There are also individual city commercial banks before a number of banks collectively cut deposit rates.

A staff member of the business department of the Beijing Branch of Bank of Jiangsu said that the branch lowered the five-year fixed deposit interest rate once at the end of August this year. The current five-year fixed deposit interest rate is 3.8%, which was 4.0% before the adjustment.

As for whether it will continue to follow up to adjust the deposit interest rate, the staff member said that it needs to be subject to the follow-up notice from the bank.

　　Industry insiders believe that in the context of the reduction of LPR (loan market quotation rate) in August, the deposit interest rate of many banks has been lowered, and more banks will not be ruled out to follow up.

　　Market risk appetite is expected to improve

　　In April this year, a number of banks collectively lowered their deposit rates.

In April this year, the market interest rate pricing self-discipline mechanism held a meeting to encourage small and medium-sized banks to lower the floating ceiling of deposit interest rates by about 10 basis points.

According to a bank source, if it is lowered, the bank's macro-prudential assessment (MPA) will have extra points.

　　This is the second time this year that a number of banks have collectively lowered their deposit rates.

The impact of this cut in deposit rates has drawn market attention.

Industry insiders believe that this move may ease the pressure on banks' interest margins.

In addition, reducing deposit interest rates may, to a certain extent, enhance market risk appetite.

　　Liao Zhiming, chief banking analyst at China Merchants Securities, said the cut in deposit rates will help reduce the cost of bank liabilities.

According to estimates, the deposit rate cut this time will ultimately reduce the bank deposit interest rate by about 7 basis points and the cost of interest-bearing liabilities by about 5 basis points, which can significantly ease the pressure on interest margins next year.

　　The previously disclosed semi-annual report of the banking industry shows that the net interest margin of listed banks in the first half of 2022 has narrowed to varying degrees.

At the performance briefing, a number of bank executives said that commercial banks' interest margins will still face downward pressure.

　　Some experts believe that large state-owned banks and rural commercial banks may benefit more.

Yu Jinxin, a banking analyst at Minsheng Securities, said that if the deposit rate cut is extended to more banks, the net interest margin of large state-owned banks and rural commercial banks will improve or relatively significantly.

"The reduction of the deposit interest rate this time is more favorable for banks with a high proportion of personal deposits (especially personal fixed-term) business." Yu Jinxin further explained that among the listed banks, state-owned large banks and rural commercial banks accounted for a higher proportion of personal deposits, and rural commercial banks accounted for a higher proportion of personal deposits. The proportion of personal regular business is significantly higher than that of other types of banks.

　　In addition, some experts believe that the reduction of deposit interest rates may increase the market's risk appetite.

Shen Chao, a macro strategy analyst at HSBC Jintrust Fund, said that lowering the deposit interest rate has substantially reduced the market's risk-free rate of return, which is expected to increase market risk appetite to a certain extent, which is good for both the bond and A-share markets.

　　On September 15, stimulated by news of a major state-owned bank cutting deposit interest rates, bank stocks ushered in a general rise that day.

Shen Juan, chief analyst of the big financial team of Huatai Securities, believes that the current price-to-book ratio of the banking sector is in the low range since 2010, and it is recommended to pay attention to high-quality small and medium-sized banks.