Many banks have formulated plans to lower existing mortgage interest rates and may make substantial progress this week

At the 2023 interim results meetings held by listed banks recently, the adjustment of existing personal housing loan interest rates has become a topic of concern to all parties in the market. As of press time on August 29, banks including the Agricultural Bank of China, China Construction Bank, China CITIC Bank, and China Merchants Bank, have responded that the state-owned banks may collectively make substantive actions regarding the adjustment of stock mortgage interest rates within this week. Judging from the current situation, it is imperative to adjust the interest rate of existing mortgages, and the industry has also forecast the impact of the adjustment of existing loans’ interest rates on net interest margin. According to the estimates of some mainstream brokerage research institutions, for every 10 BP (basis point) reduction in mortgage interest rates, the impact on the industry-wide net interest margin is about 0.9 BP to 1 BP. However, some commercial banks stated that the impact is generally controllable.