Chinese Banks Pressured to Lower Deposit Rates, Report Says

Chinese banks cut deposit interest rates in response to narrowing net interest margins as Beijing continued to pressure down financing costs to help the economy recover, the state-run Security Daily reported Tuesday.

In their annual earnings reports, seven listed Chinese banks reported net interest margins—the difference in lending and borrowing rates—below 1.8%, the level they are supposed to maintain according to the official regulations taking effect this month, said the newspaper.