From competing on interest rates to controlling costs, some small banks are lowering deposit rates.

Since March this year, many small and medium-sized banks such as Heilongjiang YOuYi Rural Commercial Bank, Nanjing Pukou Jingfa Rural Bank, and Shanghai Huarui Bank have lowered their deposit rates. After this adjustment, some small and medium-sized banks have entered the "1" digit range for deposit rates, with all fixed-term deposit rates below 2%. Industry insiders say that the frequent lowering of deposit rates by small and medium-sized banks is not just about numerical changes, but reflects a profound change in the development philosophy of China's banking industry. They are transitioning from "competing on interest rates and grabbing market share" to "controlling costs and improving efficiency", moving towards reducing costs, increasing efficiency, and building a distinctive service system. Experts suggest that small and medium-sized banks should leverage their local advantages, deeply understanding regional industrial structures, business operations of enterprises, and financial needs of residents in order to provide more precise financial services for their customers.