Banks' One-Year Deposit Rates Reach Upper Limit-Shanghai Metals Market

Hot Keywords

  • Zinc
  • Aluminium
  • Copper scrap
  • Primary lead
  • Copper
  • Customs data
  • Market commentary
  • Nickel
  • price forecast
  • Futures movement
  • MMi Iron Ore Port Index
  • Inventory data
  • Secondary lead
  • Morning comments
  • Evening comments

Banks' One-Year Deposit Rates Reach Upper Limit

Industry News 05:21:34PM Jun 19, 2012 Source:SMM

Updated: 2012-06-19 (China Daily) - Banks including China CITIC Bank, China Minsheng Banking Co Ltd and China Everbright Bank have raised their one-year deposit rate to 3.575 percent. The rate is 1.1 times the benchmark interest rate and reaches the upper limit deposit rate floating range regulated by the People's Bank of China.

The PBOC announced a 0.25 percent cut of benchmark interest rates on June 7, and allowed banks to increase the deposit rate to 1.1 times the benchmark rate.

Some commercial banks have since then floated interest rates to draw in more deposits. China CITIC Bank and Minsheng made the announcement to up deposit rates on June 14 and Everbright Bank followed suit on June 15.

China CITIC Bank said the adjustment is to "ensure that clients can get the highest amount of interest from their deposits."

By June 16, eight of the 16 listed banks have seen their deposit rates touch the upper limit, the Beijing Times reported.

Smaller banks have chosen to increase the deposit rate for fear that deposits would flow out, but whether the practice is rational depends on their bargaining power, financial expert Zhao Qingming told Beijing Times. He explained that if small banks have comparatively strong bargaining power in making loans, their profits may be unharmed by the deposit rate growth.
 
 

Key Words:  China interest rate  

Price

more
SMM #1 Nickel
May.24
97550.0
25.0
(0.03%)
#1 JinChuan Nickel
May.24
98050.0
-75.0
(-0.08%)
#1 Import Nickel
May.24
97025.0
125.0
(0.13%)
JinChuan B&C
May.24
1200.0
-200.0
(-14.29%)
Russian nickel premium
May.24
125.0
-75.0
(-37.50%)

Banks' One-Year Deposit Rates Reach Upper Limit

Industry News 05:21:34PM Jun 19, 2012 Source:SMM

Updated: 2012-06-19 (China Daily) - Banks including China CITIC Bank, China Minsheng Banking Co Ltd and China Everbright Bank have raised their one-year deposit rate to 3.575 percent. The rate is 1.1 times the benchmark interest rate and reaches the upper limit deposit rate floating range regulated by the People's Bank of China.

The PBOC announced a 0.25 percent cut of benchmark interest rates on June 7, and allowed banks to increase the deposit rate to 1.1 times the benchmark rate.

Some commercial banks have since then floated interest rates to draw in more deposits. China CITIC Bank and Minsheng made the announcement to up deposit rates on June 14 and Everbright Bank followed suit on June 15.

China CITIC Bank said the adjustment is to "ensure that clients can get the highest amount of interest from their deposits."

By June 16, eight of the 16 listed banks have seen their deposit rates touch the upper limit, the Beijing Times reported.

Smaller banks have chosen to increase the deposit rate for fear that deposits would flow out, but whether the practice is rational depends on their bargaining power, financial expert Zhao Qingming told Beijing Times. He explained that if small banks have comparatively strong bargaining power in making loans, their profits may be unharmed by the deposit rate growth.
 
 

Key Words:  China interest rate