Postal Savings Bank of China (1658) Chairman Zhang Jinliang, expects net interest margin to continue to narrow in the second half, although China’s monetary policy is likely to return to normal. PSBC's net interest margin dropped by 8 basis points to 2.42 percent in the first half, due to falling interest rates and loan yields, and rigidity of deposit costs, the lender said. The effects of the lending rate reform will unfold in the second half, he said. He said the benchmark deposit interest rate is expected to remain stable. As China’s regulator has been tightening up on the structured deposit products, Zhang expects the competition related to traditional deposit products will intensify.

Source: The Standard August 31, 2020 09:11 UTC