In recent days, the Bank of the Gulf of Guinea has issued a circular stating that it has adjusted the interest rate for the deposit of the People’s Currency on 5 May. In addition, journalists noted that the Bank of Vendors and the Bank of Pyongyang had also issued a public announcement to adjust the interest rate for deposit plates in popular currencies.

Each farewell visit by journalists and multiple shares in the north of the country, banks indicated that the main deposit rates currently adjusted were the interest rates associated with the financial and insurance products. It was also mentioned by banks that the adjustment did not involve large bills and niche products.

It is understood that this bank transfer rate began in mid-September last year, when six major banks of the State-owned and several shareholders issued successive bulletins, adjusting the interest rate of the People’s Currency deposit plate. Following the adjustment of interest rates by the three equity firms, the adjustment of the interest rate for our 12 shareholdings has been completed.

With regard to whether this year’s deposit interest rate will be further reduced, the Macro Researcher of the Ministry of Financial Markets of the Chase Bank has shown that, on a trend basis, the domestic economy has been steadily recovering, domestic consumption and investment have gradually returned, excessive savings deposits have gradually returned to normality in recent years and further reduced interest rates for some small and medium-sized banks.

Exchange rate for three shares

On 5 May, the Bank of the Gulf of Guinea issued a circular stating that the interest rate for the deposit of the people’s currency had been adjusted since 5 May 2023. The details are as follows: the interest rate for active deposits has been adjusted from 0.35 per cent to 0.25 per cent; three months, half-year and one-year full interest rates have been adjusted downward by 10 base points to 1.3 per cent, 1.59 per cent, 1.85 per cent; interest rates for the two-year, five-year consolidation have been reduced by 25 basis points to 2.40 per cent and 2.95 per cent; and the three-year full balance has been adjusted from 3.25 per cent to 2.95 per cent, with a downward adjustment of 30 basis points.

On this basis, the latest adjustment resulted in a reduction of $9,000 in interest on the deposit of 1 million in three years.

In addition, the zero-mortuity rate, the accumulated interest rate of one year, three years and five-year interest rates were reduced by 10 basis points, at 1.33 per cent, 1.59 per cent and 1.85 per cent respectively, and the interest rate for the deposit was not changed, with an interest rate of 0.55 per cent and 1.10 per cent for one day, seven days.

In addition to the Gulf Bank, the Bank issued a four-day bulletin stating that the interest rate for the deposit of the People’s Currency will be adjusted from 5 May.

In addition, on the same day, the Bank indicated that it would adjust the interest rate for the deposit of the People’s Currency on 5 May. Specifically, the interest rate for active deposits has been adjusted to 0.25 per cent; three months, half years and one full year interest rates have been reduced to 1.30 per cent, 1.55 per cent, 1.85 per cent, two-year, three-year, five-year adjustments to 2.40 per cent, 2.95 per cent and 2.95 per cent. Zero, total elimination, one year of deposit, three years, five-year adjustment to 1.40 per cent, 1.65 per cent and 1.65 per cent.

With regard to the follow-up of some small and medium-sized banks to lower interest rates, Sakamoto noted that in recent years domestic savings have grown rapidly, far above trend levels, and that the deposit market as a whole has been more supply- and demand-side-sided; and secondly, that we have actively led financial institutions to further rationalize the weaker and more focused areas of the economy of the entity, especially small and medium-sized enterprises (SMEs), and that banks have continued to entitling the real economy and to increase the net dividends of some banks.

It is known that, as early as 15 September last year, six major State-owned pedestrian bulletins announced that the interest rate for the deposit of the People’s currency has been adjusted since 15 September 2022. In terms of the adjustment range, the reduction of fixed-term deposits (construction) is generally 10-15 basis points.

Subsequently, nine shares, including solicitors’ banks, entrepreneurship banks and Chinese-counselling banks, went hand in hand with State-owned large-scale banks to lower deposit rates.

According to press statistics, the interest rate adjustment for the deposit of the 12 shares in the country has been completed, following the adjustment of interest rates by the Gulf Bank, the Bank of the Gulf of Guinea and the Bank of the Gulf of Guinea.

Field visits: banks say that this adjustment does not involve significant amounts

What is the interest rate for deposits actually executed at the bank point with the adjustment of the interest rate of the plate?

On 5 May, in the afternoon, journalists arrived at an equity pedestrian point in the Shanghai region, where the staff member indicated that the interest rate for the bank’s deposit had been reduced on 5 May. In accordance with the Proclamation on the Recalculation of Interest Rates on the Deposit of the People’s Currency, posted at the gate, the Bank has adjusted the mortgage interest rate for the deposit of the People’s Currency since 5 May.

Photo sources: per journalist, Songchin intake

In the case of active deposits, the annual interest rate of individuals, unit deposits has been adjusted to 0.25 per cent. In the case of fixed-term deposits, the annual interest rates for three months, distress, one year, two years, three years and five years for all deposit products have been adjusted to 1.30 per cent, 1.55 per cent, 1.85 per cent, 2.40 per cent, 2.90 per cent and 2.95 per cent, respectively. The one-year, three-year and five-year deposit products were adjusted to 1.30 per cent, 1.55 per cent and 1.85 per cent respectively.

Staff indicated that the current adjustment was mainly a deposit interest rate and that the interest rates for the associated financial and insurance products would also be adjusted downward.

On the same afternoon, journalists arrived at an equity net point in the deep-rooted area, where they saw a three-year cap of 3.25 per cent, in which they consulted with their clients on whether the interest rate was reduced today (5 May). Staff at the Internet site stated that they had been downgraded after April and had not been redeployed in the near future.

Net interest rate from most marketed banks in the quarter continued

Deposits are the main source of bank liabilities. The proportion of our bank deposits to the total liability is generally around 70 per cent, and the vast majority of the profits are from the deposit margin, which can affect the bank’s receipts and is the most important indicator of the bank’s profitability.

In the current policy interest rate and in the context of the financial support entity economy, there is a continuing downward trend in the banking sector as a whole, with varying degrees of decline in the net divide in many State-owned enterprises, shares, and urban farmers.

The ICA data show that the overall net interest rate of commercial banks at the end of 2022 was 1.91 per cent, a decrease of 17b p. from 2021, and a first drop of 2 per cent since the data was disclosed in 2010. Wind data show that in 2022, the net divide between State-owned and equity-owned enterprises listed in Unit A increased only in individual banks.

Several banks reported in their annual reports that last year’s net divide in interest was narrowed, and that they had been retrenched repeatedly with the city by LPR in 2022.