China Mega Banks Weigh Further Deposit Rate Cuts to Boost Growth
- Banks consider cutting deposit rates for third time in a year
- Lenders are being enlisted to help shore up economic growth
An Industrial and Commercial Bank of China branch in Beijing, China.
Source: Bloomberg
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China’s biggest state-owned banks are considering lowering deposit rates for at least the third time in a year, according to people familiar with the matter, as they ramp up efforts to boost the economy and protect margins.
Industrial & Commercial Bank of China Ltd., China Construction Bank Corp. and other lenders may cut rates on local currency deposits across key tenors by between 5 and 20 basis points, said the people, asking not to be identified discussing a private matter. Regulators have signed off on the plan, the people added. The cut may come as soon as Friday, one of the people said.