China lowers deposit rate ceiling to protect banks’ interest margins, sources say

BEIJING/SHANGHAI (Reuters) -China has lowered the ceiling of deposit rates, three banking sources with direct knowledge of the guidance said on Friday, as authorities seek to protect banks’ profit margins and discourage savings.

The interest rate self-regulatory body under China’s central bank has lowered the upper limit of deposit rates banks can offer their clients, the sources said.

The move came days after China cut benchmark lending rates and state banks reduced their baseline deposit rates.

(Reporting by Beijing, Shanghai newsrooms)