Smaller China Banks Cut Deposit Interest Rates to Ease Margin Pressure

China’s biggest banks lowered their benchmark deposit rates across the board in September for the first time since 2015

(Bloomberg) — Some smaller Chinese lenders cut interest rates for time deposits over the weekend, following a similar move by larger rivals last year, after several lending rate reductions by policymakers started to squeeze their margins.

Rural lenders in provinces including Henan and Hubei lowered interest rates by as much as 45 basis points, or 0.45 of a percentage point, on some deposits, according to their announcements. After the adjustment, these lenders will pay an annual 1.9% for one-year deposits, down from the previous 2.25%.