Rural Commercial Bank has extensively lowered deposit interest rates.

Recently, rural commercial banks in many regions have started a new wave of deposit rate cuts. Since entering May, rural commercial banks in Shanxi, Guangdong, Inner Mongolia and other regions have lowered their deposit rates. This round of adjustments covers a wide range of deposit products and the decrease can be as high as 35 basis points. After the rate cuts, the deposit rates for various terms such as one year, two years, and three years have basically entered the "1" range. The reason for this wave of interest rate cuts by rural commercial banks is mainly due to factors such as pressure on net interest margins, high debt costs, and regulatory guidance. Firstly, as asset yields decline, the continuous decrease in loan market quoted rates drives down loan rates, while deposit costs are rigid, leading to a narrowing of net interest margins to historically low levels. Secondly, there is an imbalance in debt structure, with rural commercial banks highly dependent on fixed-term deposits, and long-term high-interest debt accounts for a high proportion, resulting in significantly higher cost pressures than large banks. In addition, regulatory guidance encourages the lowering of long-term, high-cost liabilities, encourages refined pricing, avoids disorderly competition, and promotes the optimization of debt structure.