China’s Mega Banks Cut Deposit Rates Further to Boost Growth

(Bloomberg) — China’s biggest state-owned banks are launching a third round of deposit rate cuts in a year, as lenders work to maintain profitability amid shrinking margins and government policies aimed at boosting consumption and demand.

Industrial & Commercial Bank of China Ltd. said it will lower deposit rates by as much as 25 basis points on some tenors starting Dec. 22. After the adjustment, the lender will pay an annual 1.45% for one-year deposits, down from 1.55%, and 1.65% on two-year deposit, down from 1.85%. It will pay 1.95% and 2% on three-year and five-year deposits, down from 2.2% and 2.25%, respectively.