Many small and medium-sized banks have announced a reduction in deposit interest rates.

Since March this year, many small and medium-sized banks such as Liaoning Revitalization Bank, Heilongjiang Friendship Rural Commercial Bank, and Shanghai Songjiang Fuming Village Rural Bank have lowered deposit rates, including current deposits, and various term deposit products. It is worth noting that after this adjustment, some small and medium-sized banks are experiencing a phenomenon of long-term deposit rates being lower than short-term deposit rates. For example, the latest five-year term deposit rate of Heilongjiang Friendship Rural Commercial Bank is 1.6%, lower than the three-year term deposit rate of 1.75%. Before this round of interest rate cuts by small and medium-sized banks, some large banks, including Construction Bank, also had their deposit product rates inverted. Experts believe that the recent interest rate cuts by small and medium-sized banks are a strategy taken to stabilize net interest margins in the context of moderately loose monetary policy, and the inversion of deposit rates is a manifestation of banks' refined liability management. Industry insiders analyze that, against the background of pushing down the comprehensive financing cost of society and the pressure on banks' net interest margins, banks are likely to continue to lower deposit rates.