The pace of deposit rate cuts for small and medium-sized banks accelerates

MetaMuskRat · 2026-04-06T23:12:43+00:00

Since April, several city commercial banks and rural commercial banks have lowered deposit rates, covering both fixed and notice deposits, with reductions ranging from a few to several dozen basis points. The deposit costs for small and medium-sized banks are decreasing year by year, and net interest margins are stabilizing. In the future, deposit rates are expected to continue to decline slightly.

MetaMuskRat

2026-04-06 23:12:43

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People’s Finance News, April 7—Since April, multiple city commercial banks and rural commercial banks have lowered deposit rates in rapid succession. Specifically, the deposit rate adjustment range covers mainstream products such as time deposits and notice deposits. The rate cut ranges from several to several dozen basis points, and the pace of rate reductions has clearly accelerated. In recent years, the deposit cost ratio of regional small and medium-sized banks has declined year by year, and net interest margins have gradually stabilized. Some banks’ 2025 deposit cost ratios have already fallen to “1—digits,” and the year-over-year decline has further widened. Several industry insiders have analyzed that, with the banking industry’s net interest margin currently at a historical low, future deposit rate adjustments may continue in the form of modest, incremental changes with structural differentiation, and the interest-rate center of gravity will still move downward steadily. (China Securities Journal)

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