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  • Professor Andrea M. Armani, University of Southern California
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  • Professor Xuchen Wang, Harbin Engineering University
  • Professor Stefan Witte, Delft University of Technology

Jianpu Technology(NYSE:JT) Institute: The 5-year and 3-year interest rate spread hangs upside down and is enlarging

Jianpu Technology (NYSE: JT)

BEIJING, 中国, May 22, 2021 /EINPresswire.com/ -- According to Rong360 Big Data Research Institute’s surveillance data, the average interest rates for 3-month and 6-month time deposits in big state-owned banks were still slightly higher than those in other types of banks in February 2021. For the products which tenors over one year (including one year), rural commercial banks saw the highest average deposit interest rates for 1-year and over 1-year products. The average interest rates for each type of products in urban commercial banks were in the middle. However, the average interest rates of each tenor of products within shareholding banks were still at the bottom.

In February, the average interest rates rose for time deposits of all types of banks with a tenor of more than one year, the average interest rates increased of the 3- and 6-month short-term deposits for urban commercial banks and big state-owned banks, while that of shareholding banks and rural commercial banks remained the same as the previous period.
As for interest spreads between 3-year and 5-year time deposits, all banks’ status was different, although the spreads were expanding. The large spreads between the average interest rates of 3-year and 5-year time deposits were mainly attributed to large commercial banks' wide spreads. In February 2021, the spreads in state-owned banks were 56BP, and the spreads in shareholding banks, urban commercial banks, and rural commercial banks were 18BP, 16BP, and 12BP, respectively.

Average 3-year interest rates in state-owned banks were higher than 5-year by 37BP since January 2020. While during the same period, average interest rates for the 3-year deposits in shareholding banks, urban commercial banks, and rural commercial banks were lower than the 5-year by -4BP, -5BP, and -13BP, respectively. As 3-year rates continued to rise, 3-year and 5-year average rates in all types of banks were down across the board since October 2020. This increase in spreads was mainly due to 3 and 5-year deposit policy adjustments in shareholding banks, urban commercial banks, and rural commercial banks. The spread has changed from negative to positive, and the fluctuation range is larger than that of large state-owned banks.

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