More Chinese Banks Cut Deposit Interest Rates as Margins Shrink

(Bloomberg) — At least three nationwide Chinese banks lowered interest rates on deposits following a similar move by smaller rivals last month as lenders battle shrinking margins.

Mid-sized national banks including China Zheshang Bank Co., Hengfeng Bank Co. and China Bohai Bank Co. said late Thursday they lowered deposit rates as much as 30 basis points, or 0.3 of a percentage point, on some deposits. After the adjustment, these lenders will pay an annual 1.85% for a one-year deposit, down from 1.95%. They will pay 2.95% on three-year deposits, down from 3.2%, and on five-year deposits, down from 3.25%.