Bank of China, Agricultural Bank slash interest rates on some deposits

Bank of China and Agricultural Bank of China have implemented interest rate reductions on select deposits starting Friday, as indicated on the banks' official websites.

The adjustments involve a 10 basis points (bps) reduction for 1-year and 2-year time deposits, and a 25 bps decrease for 3-year and 5-year time deposits.

The move follows the announcement by Industrial and Commercial Bank of China (ICBC), the country's largest lender, of similar interest rate cuts on some deposits. 

The collective action aims to alleviate pressure on banks' net interest margins, a vital profitability metric, while also creating flexibility to lower lending costs, aligning with the government's call for banks to support the economy.

(With Reuters Inputs)