Citic Securities: Continued Differentiation in Growth Rates between Resident Deposits and Non-bank Deposits

CITIC Securities research report pointed out that since the beginning of this year, there has been a continuous differentiation in the growth rates of household deposits and non-bank deposits. We believe that banks taking the initiative to remove medium and long-term time deposits is a proactive adjustment to reduce high-cost liabilities and optimize liability structure in the context of net interest margin pressure and widening interest rate spreads. The continuous decline in household deposits is essentially the result of the downward trend in deposit interest rates, the rebalancing of household asset allocation, and the restoration of financial market risk preferences. This is helpful in promoting the transformation of funds from stagnant savings to liquid and investment funds, which has a certain positive significance for enhancing the activation of money supply, improving financial market liquidity, and alleviating bank liability costs.