BEIJING, Dec 22 — Five of China’s largest state banks, including the Agricultural Bank of China 601288.SS and China Construction Bank 601939.SS, have cut interest rates on some deposits from today, according to the banks’ websites.
Bank of China 601988.SS and Bank of Communications 601328.SS have also adjusted their rates on some deposits from today, notices on their websites showed.
The cuts could offset pressure on banks’ net interest margins — a key gauge of profitability — and provide room to reduce lending costs as the government urged banks to support the economy.
Rates for 1-year and 2-year time deposits were cut by 10 basis points (bps) and 20 bps, respectively, and rates for 3-year and 5-year time deposits were cut by 25 bps.
The moves came after Industrial and Commercial Bank of China (ICBC) 601398.SS, China’s largest lender by assets, yesterday said it would cut interest rates on some deposits.
Sources with knowledge of the matter had said yesterday that some major Chinese commercial banks would cut time deposit rates today. — Reuters
