China’s Major Banks Cut Deposit Rates to Protect Profitability
- China also lowers down payments, rates on existing mortgages
- Authorities are seeking to boost consumer demand, economy
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China’s major banks made a coordinated cut in deposit rates for the third time in a year, as lenders move to protect business profitability amid government policies aimed to boost consumption and demand.
State-controlled banking giants Industrial & Commercial Bank of China Ltd., Bank of China Ltd, and Agricultural Bank of China Ltd. were among the lenders who cut rates for customers, according to online statements. The one-year annualized rate for deposits was lowered by 10 basis points to 1.55%, while the five-year rate was cut by 25 basis points to 2.25%.