Short-term deposits counter the trend of "raising interest rates" for small and medium-sized banks.

At the beginning of 2026, as large state-owned banks continued to shrink long-term high-interest deposit products, a deposit interest rate "contrary increase" led by small and medium-sized banks quietly occurred. From Jiashan, Zhejiang to Shangnan, Shaanxi, many rural commercial banks have raised the interest rates of 1 to 3 year fixed-term deposits, with increases ranging from 10 to 20 basis points; at the same time, the large-denomination certificate of deposit market has also seen a wave of issuance, with rural commercial banks playing a leading role. Experts say that this seemingly contradictory move to the overall market interest rate decline trend is not a signal of a strategic shift in the industry. Against the backdrop of net interest margins generally under pressure in the banking industry and monetary policy maintaining a moderately loose stance, this appears more like a short-term marketing campaign launched by small and medium-sized banks in the critical period of the early year to compete for market share, reflecting the differentiated survival strategies between banks of different sizes in fierce competition and cost control.