Small Banks Buck The Trend To Raise Deposit Rates

While some small- and medium-sized banks raised deposit rates at year-end to attract depositors and prepare for the credit peak early next year, this will likely not change the overall downward trend, National Business Day reported citing analysts. Some joint-stock banks and city commercial banks see inverted rates of three-year and five-year deposits after an average 4.3 bp m/m rise in three-year products in November. An unnamed researcher from a major bank said the deposit interest rates will likely fall further next year with the decline of the benchmark Loan Prime Rate. The average interest rates of two-, three-, and five-year deposits in November dropped by 27, 39.5, and 43.5 bp in November, compared with end-2022, data by Rong360 Digital Technology Institute showed.