Financial Management: Liberalization Of Deposit Interest Rate Ceiling

Since the central bank announced the 24 day interest rate cut and liberalization of the deposit interest rate ceiling, banks adjusted the interest rate of savings and loans overnight. Among them, labor, agriculture, China, construction, and the five major banks, the one-year deposit interest rate has the smallest floating rate, and the joint-stock banks have a higher floating rate, with the highest and the highest floating 35%.

After the central bank liberalized the ceiling of deposit interest rate, it did not adjust the current interest rate. However, of the 28 banks in the people's financial statistics, 18 have adjusted the interest rate on demand deposits, with 17 downgrades and only one bank of East Asia.

In terms of regular interest rates, taking one year period as an example, the five major industries, agricultural banks, China, construction and exchange companies, as well as China Merchants Bank and HSBC, have a floating interest rate of 16.7% over the benchmark interest rate, with the lowest floating rate and 1.75% interest rates.

In terms of joint stock banks, the Bank of Beijing and Ningbo bank were 2.025%, the 35% highest on the basis of the benchmark of the central bank. In addition, the joint-stock commercial banks such as Ping An Bank, Minsheng Bank, CITIC Bank and Hengfeng bank are up about 33.3% of the benchmark interest rate, and the deposit interest rate is 2%.

Some media pointed out that after the interest rate cut, the one-year deposit interest rate was 1.5%, while the CPI index released by the National Bureau of statistics in 2015 and September was 2% and 1.6% respectively, and the deposit interest rate ran for two consecutive months. CPI The situation.

"The adjustment of the benchmark interest rate in addition to the main observation of CPI changes, we should also properly refer to the GDP deflator and other price index changes." The relevant person in charge of the central bank said that through statistical data, we can see that the GDP deflator is lower than CPI, and the GDP deflator of the first three quarters is -0.3%. In addition, PPI fell by 5.9% in September, which has been negative for 43 consecutive months. Therefore, with the overall low level of prices, appropriate downgrades should be made. benchmark interest rate It is reasonable.

Dong Ximiao, a visiting researcher at Chongyang Financial Research Institute, Renmin University of China, pointed out that demand deposits are one of the cheapest sources of capital, accounting for a relatively large proportion, but therefore, different banks have different strategies. In western countries, the United States even charges deposits, and some countries in Europe also have negative interest rates.

"Therefore, it is impossible to exclude the possibility of a certain period of deposit interest rate cut, and in the next few years, we may move towards an era of low interest rates, zero interest rates or even negative interest rates." Dong Ximiao said.

The central bank said that the liberalization of interest rates on deposits, such as commercial banks and rural cooperative financial institutions, signifies that China's interest rate control has basically been liberalized and that reform has taken a very crucial step. Interest rate liberalization Enter a new stage.

"The cancellation of the upper limit of deposit interest rate is a new starting point for the reform of the central bank's regulation mode, tools and reference system in the macro sense." Lu Lei, director of the central bank's Research Bureau, said in a media interview that the central bank will continue to publish the benchmark rate of deposit and loan in the coming period, and will be an important reference for the interest rate pricing of financial institutions.