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Major Banks Cutting Deposit Rates

CHINA RATES

ICBC and Agricultural Bank of China cut deposit rates by 20bps on two year term deposits and by 10bps on one year term deposits, following policy reductions by the PBOC.


  • Net interest margins for banks have been under pressure falling to record lows, below what is deemed sufficient to maintain profitability. The cut in deposit rates is aimed at stemming the pressure in margins and stimulate lending.

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