China's biggest state banks cut interest rates on yuan deposits
FILE PHOTO: FILE PHOTO: A clerk of ICBC bank counts Chinese one hundred Yuan Banknotes as she poses for a photographer during a photo opportunity at its branch in Beijing, China, April 13, 2016. REUTERS/Kim Kyung-Hoon
BEIJING: China's biggest banks on Thursday (Jun 8) said they have lowered their interest rates on yuan deposits, action that could ease pressure on profit margins and make room for reduced lending costs.
Industrial and Commercial Bank of China, Agricultural Bank of China, Bank of China and China Construction Bank all cut their rates from Thursday, showed websites from each bank.
The state-backed banks cut rates on demand deposits by 5 basis points and three-year and five-year time deposits by 15 basis points.
This is the second such cut within a year, with previous action taken in September.
A regulatory body overseen by the People's Bank of China has asked the lenders to also lower US dollar deposit rates, four people with direct knowledge of the matter said on Tuesday.
