China's state-owned banks cut personal deposit rates
Yang Jing
A branch of Industrial and Commercial Bank of China in Beijing, China, March 28, 2022. /CFP

A branch of Industrial and Commercial Bank of China in Beijing, China, March 28, 2022. /CFP

Several major Chinese banks have cut personal deposit rates from Thursday, according to information on their official websites, a move that follows recent loan prime rate (LPR) cuts.

The Industrial and Commercial banks of China (ICBC), the largest bank in the world by total assets, cut interest rates for three-year deposits by 15 basis points to 2.6 percent, its website showed.

ICBC also cut its interest rate for three-month, six-month, one-year, and five-year deposits by 10 basis points to 1.25 percent, 1.45 percent, 1.65 percent, and 2.65 percent respectively.

Other three state-owned banks, Bank of China, Agricultural Bank of China, and China Construction Bank, also made similar rates cuts, China Securities Journal reported on Thursday.

The lower deposit rates were as expected after recent lending rates cuts, Yan Yuejin, director of Shanghai-based E-house China Research and Development Institute, said in a note on Thursday.

China cut its benchmark lending rates, the LPR, in January and August this year.

Last month, the one-year LPR, which influences most new and outstanding loans in China, was cut to 3.65 percent from 3.7 percent. The over-five-year LPR, on which many lenders base their mortgage rates, was lowered by 15 basis points to 4.3 percent.

Major Chinese banks have lowered yields on corporate and mortgage loans in response to the authorities' call for lower funding costs for the corporate sector and homebuyers. Deposit rates cut will help stabilize banks' profitability and stimulate China's economic growth, analysts said.


Search Trends