Banks Raise Interest Rates for Long-Term Deposits

(Beijing) – Several joint-stock banks have recently raised their interest rates for long-term deposits to attract savings, sources from the banks said.

Analysts say it is normal for banks to solicit depositors near the end of quarters because this is when they are ranked by performance.

However, analysts also say there are signs liquidity is tighter than usual. They cite an increase in interbank borrowing rates and the yields of many wealth management products. They doubt the situation will be comparable to the credit crunch that hit the interbank market in June and July.