Chinese Banks May Arrest Margin Decline Amid More Stable Cost Of Deposits
Source: SeekingAlpha
2025-05-23 03:20:00 ET
Summary
- China's biggest banks are likely to arrest the decline in their net interest margins as the cost of deposits will likely stabilize in an environment of low interest rates.
- With the lower interest rates passing through to deposits, banks can expect to pay lower on their liabilities and partially offset the impact on margins.
- The People's Bank of China cut its one-year loan prime rate to 3.0% from 3.1%, and the five-year rate to 3.5% from 3.6% on May 20.
China's biggest banks are likely to arrest the decline in their net interest margins (NIMs) as the cost of deposits will likely stabilize in an environment of low interest rates....
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Chinese Banks May Arrest Margin Decline Amid More Stable Cost Of Deposits
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