Chinese Banks Set to Cut Deposit Rates as Soon as This Week
- China has lowered key policy rates, slashed mortgage costs
- Lenders are under growing pressure from record low margins
This article is for subscribers only.
Chinese banks are set to trim rates on 300 trillion yuan ($42.3 trillion) of deposits as soon as this week after the latest barrage of stimulus policies further squeeze their profitability, according to people familiar with the matter.
Major banks including Industrial & Commercial Bank of China Ltd. and China Construction Bank Corp. will be guided by the central bank’s interest rate self-disciplinary mechanism to lower the rates on a number of deposit products, said the people, who asked not to be identified discussing a private matter.