Recently, Shanghai's Songjiang Fuming Village Bank's announcement to adjust interest rates on RMB deposits attracted market attention. According to the announcement, since August 21, the bank's two-year and three-year full deposit and withdrawal interest rates have been lowered by 10 basis points respectively from the original basis. As a result of this adjustment, interest rates for deposits with a term of one year or more fell directly to the level of a one-year term. Interest rates on two-year, three-year, and one-year deposits rarely “aligned” and were fixed at 1.65% in unison. “This situation is an extreme extension of the inversion phenomenon in the industry.” Bai Wenxi, vice chairman of the China Enterprise Capital Alliance, told reporters. In his view, directly leveling interest rates on one-year, two-year, and three-year deposits in the future is only an option for a few institutions, but what cannot be ignored is that the continued narrowing of term premiums is still the general direction.

Recently, Shanghai's Songjiang Fuming Village Bank's announcement to adjust interest rates on RMB deposits attracted market attention. According to the announcement, since August 21, the bank's two-year and three-year full deposit and withdrawal interest rates have been lowered by 10 basis points respectively from the original basis. As a result of this adjustment, interest rates for deposits with a term of one year or more fell directly to the level of a one-year term. Interest rates on two-year, three-year, and one-year deposits rarely “aligned” and were fixed at 1.65% in unison. “This situation is an extreme extension of the inversion phenomenon in the industry.” Bai Wenxi, vice chairman of the China Enterprise Capital Alliance, told reporters. In his view, directly leveling interest rates on one-year, two-year, and three-year deposits in the future is only an option for a few institutions, but what cannot be ignored is that the continued narrowing of term premiums is still the general direction.