Reuters exclusively reported that members of China’s “interest rate self-regulatory mechanism,” mostly banks, met this month and were urged to reduce deposit rates as a way to guide the country’s savings into spending and more productive investments.
Economy
China guides banks to further cut deposit rates
24 April 2023, 2:50 pm 1 minute
Market Impact
Household savings surged 9.9 trillion yuan for the first quarter, after record growth of 17.8 trillion yuan last year. Net interest margins, a key measure of banks’ profitability, hit a record low of just 1.91% during the fourth quarter of 2022. With margins so low, lower deposit rates will to aid the economy.
Article Tags
Topics of Interest: Economy
Type: Reuters Best
Sectors: Economy & Policy
Regions: Asia
Countries: China
Win Types: Exclusivity
Story Types: Exclusive / Scoop
Media Types: Text
Customer Impact: Significant National Story
