The Federal Reserve recently announced that it would lower the target range of the federal funds rate by 25 basis points, and the market is increasingly concerned about the trend of US dollar asset interest rates.
On September 23, the reporter visited several bank outlets in Shanghai and saw that the current adjustments to the interest rates of US dollar deposits and wealth management products are different, but many people believe that the new round of US dollar deposit “interest cut” cycle has begun.
Some foreign banks and city commercial banks responded quickly and have adjusted the US dollar deposit interest rate, while large state-owned banks have not yet lowered the US dollar deposit interest rate. An internal staff member of a branch of a state-owned bank in Pudong revealed to reporters: “There has not been noticed yet, but it should have been in the past few weeks, so it is inevitable to follow the adjustment.”
In the industry’s view, the different pace of lowering interest rates on the US dollar deposits by banks is mainly related to differences in their liability structure, capital costs and decision-making mechanisms. It is expected that the US dollar deposit interest rate will continue to be lowered this year.
During the visit, the reporter learned that most Chinese banks represented by state-owned major acts have not yet lowered the interest rate on US dollar deposits, but some small and medium-sized banks have taken the lead in taking action.
The financial manager of a branch branch of Nanjing Bank in Shanghai told reporters that the bank lowered the interest rate of US dollar deposit a few days ago. Currently, deposits with a deposit amount of US$50,000 have dropped to 3.3%, and the one-year interest rate for deposits of US$200,000 has dropped to 3.55%, down 10BP and 25BP respectively from the previous period.
“If you come ten days ago, you can still deposit US dollar deposits with the original interest rate. Under the same conditions, the deposit interest rates are 3.4% and 3.8% respectively. Now the new deposit interest rate has begun to be implemented.” said the above-mentioned financial manager.
An employee of an ICBC branch branch in Shanghai told reporters that the bank’s current US dollar deposit amount is US$5,000, with interest rates of 2.2% per month, 2.3% per month, 2.5% per month, 2.5% per month, 2.8% per year and 2 years.
“At present, no notice has been received to lower the US dollar deposit interest rate. Basically, the US dollar deposit interest rate level and requirements are the same as those of several other state-owned banks, and the US dollar financial management interest rate has not been adjusted,” said the above-mentioned employee of the ICBC branch.
However, an employee of a branch of a state-owned bank in Pudong told reporters: “Although I haven’t received the notice for the time being, I feel it should be very fast. After all, the Federal Reserve just announced a rate cut last week, and banks also need time, and the next product may be lowered.”
In addition, from the perspective of foreign banks, many foreign banks have lowered the interest rate on US dollar deposits.
For example, HSBC practitioners said that the bank had lowered the fixed deposit interest rate of new funds for some periods on the day the Federal Reserve announced. The adjusted interest rates were: if deposited from US$20,000, the 1-month, 3-month and 6-month deposit rates were 3.5%, and 3.05% in 12 months; if deposited from US$50,000, the 1-month and 6-month deposit rates were 3.6%. Before, among the interest rates corresponding to the deposit amounts from the two levels, the interest rate for one month was lowered by 10BP, and the interest rate for six months was lowered by 20BP.
