AUGAF
  • Home
  • Politics
  • Business
  • National
  • News
  • Finance
  • Technology
  • Sports
  • International
  • CommoditiesNew
  • Contact
No Result
View All Result
  • Home
  • Politics
  • Business
  • National
  • News
  • Finance
  • Technology
  • Sports
  • International
  • CommoditiesNew
  • Contact
No Result
View All Result
AUGAF
No Result
View All Result
Home Business

China’s Biggest State Banks Cut Deposit Rates

admin-augaf by admin-augaf
June 8, 2023
in Business, Finance, International
Reading Time: 3 mins read
0
China’s Biggest State Banks Cut Deposit Rates
Share on FacebookShare on TwitterWhatsapp

Beijing June 8 2023: China’s biggest banks on Thursday said they have lowered interest rates on yuan deposits, in actions that could ease pressure on profit margins and reduce lending costs, providing some relief for the financial sector and wider economy.

Industrial and Commercial Bank of China Ltd (601398.SS), Agricultural Bank of China Ltd (601288.SS), Bank of China Ltd (601988.SS) and China Construction Bank Corp (601939.SS) all cut their rates from Thursday, websites from each bank showed.

The state-backed banks cut rates on demand deposits by 5 basis points and three-year and five-year time deposits by 15 basis points.

This is the second such cut within a year, with previous action taken in September.

“The deposit rate cuts will push savings into consumption and investment and ease the pressure on banks’ net interest margins (NIM), opening the door for further monetary stimulus,” said Gary Ng, Asia Pacific senior economist of Natixis.

China’s biggest state banks cut deposit rates
Reuters
June 8, 20237:43 AM GMT+5Updated 2 hours ago
FILE PHOTO: A clerk of ICBC bank counts Chinese one hundred Yuan Banknotes as she poses for camera during a photo opportunity at its branch in Beijing
FILE PHOTO: A clerk of ICBC bank counts Chinese one hundred Yuan Banknotes as she poses for a photographer during a photo opportunity at its branch in Beijing, China, April 13, 2016. REUTERS/Kim Kyung-Hoon
BEIJING, June 8 (Reuters) – China’s biggest banks on Thursday said they have lowered interest rates on yuan deposits, in actions that could ease pressure on profit margins and reduce lending costs, providing some relief for the financial sector and wider economy.

Industrial and Commercial Bank of China Ltd (601398.SS), Agricultural Bank of China Ltd (601288.SS), Bank of China Ltd (601988.SS) and China Construction Bank Corp (601939.SS) all cut their rates from Thursday, websites from each bank showed.

Advertisement · Scroll to continue
The state-backed banks cut rates on demand deposits by 5 basis points and three-year and five-year time deposits by 15 basis points.

This is the second such cut within a year, with previous action taken in September.

“The deposit rate cuts will push savings into consumption and investment and ease the pressure on banks’ net interest margins (NIM), opening the door for further monetary stimulus,” said Gary Ng, Asia Pacific senior economist of Natixis.

Advertisement · Scroll to continue
He expects a 50 basis points cut in the reserve requirement ratio (RRR) soon to support local government bond issuance. But additional loan prime rate cuts will only come if economic data or financial risks deteriorate to a level that prevents China from meeting its 5% target, said Ng.

China cut the RRR in March but has kept its benchmark lending rate unchanged this year, as widening yield differentials with the United States limited the scope for substantial monetary easing.

Major state banks’ net interest margins have shrunk following pressure to lower borrowing cost for individuals and businesses to stimulate the economy, and as credit demand remains subdued.

China’s economy rebounded faster than expected in the first quarter but lost momentum at the beginning of the second, grappling with tumbling exports, a sluggish housing market and a high unemployment ratio.

A regulatory body overseen by the People’s Bank of China has asked the lenders to also lower U.S. dollar deposit rates, four people with direct knowledge of the matter said on Tuesday.

The benchmark CSI Banks Index (.CSI399986) rose 0.35% in morning trading on Thursday.

Tags: icbc
admin-augaf

admin-augaf

Related Posts

Inflation
Business

UK Inflation Slows in May Despite Food Prices Jump

June 18, 2025
UAE’s Islamic Treasury Sukuk Oversubscribed 7.6 Times
Business

UAE Exempts Iranian Citizens from Overstay Fines Amid Regional Airspace Closures

June 18, 2025
Business

Interloop Associate Acquired Bonnie Doom Brand

June 18, 2025
Fair Global Consult Fair Global Consult Fair Global Consult
ADVERTISEMENT

Recent News

Inflation

UK Inflation Slows in May Despite Food Prices Jump

June 18, 2025
UAE’s Islamic Treasury Sukuk Oversubscribed 7.6 Times

UAE Exempts Iranian Citizens from Overstay Fines Amid Regional Airspace Closures

June 18, 2025

Interloop Associate Acquired Bonnie Doom Brand

June 18, 2025
Oil Prices Fall After Iran Attack As Market Draws Down Risk Premium

Oil Prices Keep Climbing as Iran-Israel Conflict Enters Sixth Day

June 18, 2025
Secret Service Confirms Cocaine Was Found Inside White House

Trump to Meet With Pakistan Army Chief at White House Wednesday

June 18, 2025

Popular News

  • NSS

    President Prohibit National Savings For Changing Rates on Existing Certificates Retrospectively

    0 shares
    Share 0 Tweet 0
  • Pakistan Rupee Appreciate against Dollar in Interbank as IMF Confirmed Board Review Date

    0 shares
    Share 0 Tweet 0
  • Pakistan Rupee Fall After 13 Days of Successive Gains against Dollar on Lower Remittances and Strengthening of US Dollar

    0 shares
    Share 0 Tweet 0
  • Petrol Prices in Pakistan to Return to July 2023 Levels

    0 shares
    Share 0 Tweet 0
  • Pakistan Central Bank Issued Show Cause Notice to Eight Banks Over Currency Speculation

    0 shares
    Share 0 Tweet 0

Categories

  • Budget
  • Business
  • Culture
  • Finance
  • International
  • National
  • News
  • Politics
  • PTI
  • Sports
  • Technology
AUGAF Logo

Follow us on social media:

Recent News

  • UK Inflation Slows in May Despite Food Prices Jump
  • UAE Exempts Iranian Citizens from Overstay Fines Amid Regional Airspace Closures
  • Interloop Associate Acquired Bonnie Doom Brand

Category

  • Budget
  • Business
  • Culture
  • Finance
  • International
  • National
  • News
  • Politics
  • PTI
  • Sports
  • Technology

Recent News

Inflation

UK Inflation Slows in May Despite Food Prices Jump

June 18, 2025
UAE’s Islamic Treasury Sukuk Oversubscribed 7.6 Times

UAE Exempts Iranian Citizens from Overstay Fines Amid Regional Airspace Closures

June 18, 2025
  • Home
  • Politics
  • News
  • Business
  • National
  • Finance
  • Technology
  • International

© 2021 AUGAF.

No Result
View All Result
  • Home
  • Politics
  • Business
  • National
  • News
  • Finance
  • Technology
  • Sports
  • International
  • Commodities
  • Contact

© 2021 AUGAF.