The bank rates have been cut for the third time in a year. These cuts are bigger than the ones in June and September of last year.
A banking expert at Moody's named Nicholas Zhu said that lower rates for deposits will help offset some of the pressures on banks' net interest margins, which is a key measure of how profitable they are.
"The deposit rate cut has a great effect, as deposits make up nearly three-quarters of Chinese bank’s debts," said Zhu.
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