Small and Medium-Sized Banks Accelerate Pace of Deposit Rate Cuts

Since April, a number of city commercial banks and rural commercial banks have intensively lowered their deposit interest rates. Specifically, the scope of deposit rate adjustments covers mainstream products such as fixed deposits and notice deposits, with rate reductions ranging from a few to dozens of basis points, and the pace of rate cuts has clearly accelerated. In recent years, the deposit cost rates of regional small and medium-sized banks have declined year by year, and net interest margins have gradually stabilized. Some banks' deposit cost rates for 2025 have already fallen into the "1% range," with year-on-year declines further expanding. Multiple industry insiders analyzed that the net interest margin of the banking industry is currently at a historical low. Future deposit interest rate adjustments may continue to follow a small, gradual, and structurally differentiated pattern, and the interest rate center will still decline steadily. (China Securities Journal)