China's key joint-stock banks have officially announced a reduction in renminbi deposit rates, with a 15 basis points cut for three-year and five-year deposits following the recent rates adjustment by the country's State-owned banks, ThePaper.cn reported on Monday.

China Merchants Bank, Shanghai Pudong Development Bank, China CITIC Bank, Everbright Bank, Ping An Bank and China Minsheng Bank are among the banks that have lowered both current and fixed-term deposit rates.

Specifically, China Merchants, Everbright and China Minsheng have all lowered their current deposit rates from 0.25 to 0.2 percent, according to their official websites.

The deposit rates on fixed-term products vary among banks.

For example, China Merchants Bank reduced the rate for two-year deposits by 10 basis points from 2.15 to 2.05 percent, and its three- and five-year deposit rates were dropped by 15 basis points to 2.45 and 2.5 percent.

Everbright and China Minsheng now offer 2.5 percent for three-year deposits and 2.55 percent for five-year deposits, down from 2.65 and 2.7 percent, respectively.

China last adjusted deposit rates by both State-owned and joint-stock banks in September 2022, making this the second occasion to do so in less than a year.

The move is expected to help banks reduce liability costs and stabilize interest margins, Huachuang Securities Research Institute pointed out.

The slash in long-term deposit rates, especially the five-year rate, aims to alleviate pressure on banks' long-term liabilities amid a growing demand for fixed-term deposits.

It is estimated small and medium-sized banks will follow the major lenders in lowering their deposit rates, influenced by the deposit self-discipline mechanism and the increased scrutiny by April's macro-prudential assessment.

The banking industry is expected to reduce liability costs by 2-3 basis points through a synchronized reduction in current, two-year, three-year and five-year deposit rates.