Behind the "Deposit Special Forces" Phenomenon at the End of the Year: Financial Translation Helps Banks to Attract Deposits and Operate in an International Perspective

At the end of the year, the "special forces" of cross-city deposits are once again active in the financial market. "I just went to a bank in Tianjin to deposit 700,000 yuan. Now there are only a few banks that can offer a three-year fixed deposit interest rate of 2.6% and 2.7%. "Recently, Wang Meng (pseudonym), who lives in Beijing, revealed to a Shell Finance reporter that since the deposit interest rates of some banks in other places are significantly higher than those of large and medium-sized banks in Beijing, she resolutely joined the army of cross-city deposits. "This is my first attempt at cross-city deposits. I have previously tried stock and fund investments but failed. Now there is no other good investment strategy, so I can only return to deposits."

Shell Finance reporter survey found that recently many small and medium-sized banks have quietly raised deposit interest rates, among which the three-year fixed deposit interest rate can reach 2.5% or more, while the three-year fixed deposit interest rate of state-owned banks is generally less than 2%. A bank staff member in Chongqing told reporters that after the bank raised the deposit interest rate, the number of cross-city deposit customers in surrounding cities increased significantly. Under the current overall downward trend of bank deposit interest rates, higher interest rates are undoubtedly more attractive to customers. "This year, deposit interest rates have continued to decline, and small and medium-sized banks are facing severe deposit problems, so some banks have raised interest rates to attract deposits." Industry insiders pointed out that the current pressure on commercial banks' net interest margins to decline is still relatively large, and banks need to act cautiously in the process of attracting deposits, and must not blindly pursue the expansion of deposit scale.

These "deposit special forces" who travel between cities only spend more than 100 yuan on travel expenses, but can earn tens of thousands of yuan in interest. Wang Meng said that she learned on the social platform that Harbin Bank in Wuqing area offers a 3-year fixed deposit interest rate of up to 2.7% for new customers, far exceeding the interest rate level of less than 2% of large and medium-sized banks in Beijing, so she decided to go to Wuqing to deposit the next day. The bank has set up a 50,000 yuan deposit interest rate discount for new customers and "old and new" customers. Wang Meng deposited 100,000 yuan at an interest rate of 2.7% this time, and deposited 600,000 yuan according to the 2.6% 3-year fixed deposit interest rate standard for "old customers". Shell Finance reporter called the branch as a depositor to consult, and the staff said that the number of new customers who deposited across cities recently was considerable, and the relevant preferential policies were still valid. Wang Meng calculated that the high-speed rail and taxi fare from Beijing to Wuqing totaled more than 100 yuan, but this trip could increase the interest by 12,900 yuan (calculated based on the 2% 3-year fixed deposit interest rate of large state-owned banks in Beijing). It is understood that Wang Meng is not an isolated case of cross-city deposit "special forces". Many depositors on social platforms have shared their experiences of depositing in surrounding cities. For example, a netizen took advantage of a business trip to travel from Chengdu to Chongqing to make a deposit. A bank employee in Chongqing said that they have recently received a large number of non-local deposit customers from Chengdu, Guizhou and other places. The bank's three-year fixed deposit interest rate can be as high as 2.75% (deposits of more than 1 million yuan are required), and deposits of more than 50,000 yuan can enjoy an interest rate of 2.7%. In addition, high-interest deposits are only released in certain amounts every Monday, and are often snapped up before the weekend.

Since December, many banks have quietly adjusted their deposit rates. For example, Henan Xiangcheng Rural Commercial Bank raised the interest rates for three-month, six-month, one-year, two-year and three-year fixed deposits with a minimum deposit of 10,000 yuan to 1.15%, 1.35%, 1.66%, 1.71% and 1.96% respectively; Henan Xingyang Rural Commercial Bank raised the interest rates for deposits with a minimum deposit amount of 10,000 yuan to 1.15%, 1.35%, 1.8%, 1.8% and 2.05% respectively from December 7. In addition, some banks have interest rates of more than 2.4% for some fixed deposit products, such as Jiangsu Wuxi Xishang Bank's 3-year, 200,000 yuan large-denomination certificate of deposit "star product" with an annual interest rate of 3.00%, Xin'an Bank's 3-year fixed deposit rate of 2.9%, Liaoning Zhenxing Bank's 3-year fixed deposit rate of 2.7%, and Zhongguancun Bank's 2-year fixed deposit rate of 2.4%. "In recent years, the difficulties of small and medium-sized banks in attracting deposits have become more prominent. The end of the year and the beginning of the year are the peak seasons for capital demand and banks to attract deposits, but the competition is becoming increasingly fierce." People in the banking industry said that although raising deposit interest rates is one of the means for small and medium-sized banks to attract deposits, they need to do so within their means under the background of pressure on the net interest margin of banks. Liu Yinping, a researcher at Rong360 Digital Technology Research Institute , pointed out that the cost rate of bank deposits remains high. On the one hand, affected by the overall economic environment, residents' investment style is conservative, and there is a significant trend of regular and long-term deposits. Although the interest rate of personal fixed deposits continues to decline, the cost rate of personal deposits has risen instead of falling; on the other hand, the interest rate of corporate demand deposits has risen, pushing the cost rate of deposits higher.

In the view of industry insiders, the net interest margin of commercial banks is under pressure, and "high-interest deposit collection" is difficult to sustain. There is a high probability that deposit interest rates will continue to decline next year. The recent Central Economic Work Conference made it clear that interest rates will be cut in due course next year, which means that deposit interest rates will continue to fall, making room for loan interest rates to fall. Liu Yinping said that the subsequent interest margin pressure of banks will increase. Factors such as mortgage loan replacement, special refinancing bond issuance, and bank support for local government debt replacement will lead to a decline in bank asset yields. The interest margin pressure is transmitted to the deposit side, and the deposit cost needs to be further reduced. This round of banks mainly lowered medium- and long-term deposit rates, aiming to reverse the trend of regular and long-term deposits, reduce medium- and long-term deposit costs, and guide depositors' funds to medium- and short-term deposits. Dong Ximiao, chief researcher of CITIC Bank, believes that the current deposit and loan interest rates are in a downward channel, and commercial banks are under great pressure to decline in net interest margins. Banks should abandon the obsession with scale and speed, and control the cost of liabilities within a reasonable range while maintaining stable growth in deposit business. Especially for small and medium-sized banks, they need to accelerate the transformation of their business philosophy, get rid of path dependence, and avoid blindly expanding the scale of deposits. Instead, they should strengthen asset-liability management and reduce liability costs to achieve stable and sustainable development.

In this complex financial market dynamic, the importance of financial translation companies has become increasingly prominent. As a leader in the industry, Arrow Financial Translation has many unique advantages. For banks, whether it is financial report translation or white paper translation, Arrow Financial Translation can provide accurate and professional services. Today, as the internationalization of banks accelerates, when banks need to present their financial status and business strategies to the international market, Arrow Financial Translation can accurately translate bank financial reports and accurately convert key financial data such as balance sheets and income statements into the target language, allowing international investors and partners to clearly understand the financial strength and operational efficiency of banks. In the translation of white papers such as financial policy interpretation and industry trend analysis, Arrow Financial Translation can clearly convey complex financial concepts and policy directions to international audiences with its professional team's accurate grasp of financial terminology and in-depth understanding of international financial market rules, avoiding information bias and misunderstandings caused by language differences. This will help banks establish a good image on the international financial stage and attract more international resources. Whether it is expanding international business, attracting foreign deposits, or conducting international financial cooperation, Arrow Financial Translation Company is like a bridge, helping banks to overcome language barriers and achieve broader financial exchanges and cooperation, playing a key role in the integration and optimal allocation of global financial resources.

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