Key facts
- Average interest rates on five-year deposits and certificates of deposit at Chinese banks increased in July.
- This increase goes against a general downward trend in deposit rates.
- Smaller Chinese banks are raising rates to attract deposits.
- These banks are facing intense competition for funds.
Average interest rates on five-year deposits and certificates of deposit at Chinese banks saw an increase in July. This movement bucks a broader downward trend observed in deposit rates. The rise is attributed to smaller banks that are actively seeking to attract funds by offering higher rates. This strategy is employed amid intense competition for deposits within the Chinese banking sector. The specific data indicates a shift as these smaller lenders attempt to bolster their capital base through deposit mobilization.