Good News! Multiple Banks Respond to Consumer Lending Rate Cut!

Recently, multiple banks, including major ones and joint-stock commercial banks, have voiced their responses to the government's policy of cutting interest rates on personal consumer loans. The banks expressed that they will optimize the loan application process, simplify procedures, and ensure that national policies benefit consumers in a timely manner.

Although the detailed implementation plan has not been released yet, reporters have noticed that some provinces and cities have already implemented personal consumer lending rate cut policies. For instance, Sichuan Province, Chongqing City, Hangzhou Yuhang District, etc., have all had such experiences. From practice, it can be seen that different regions have varying approaches, with interest rates mostly around 1.5%.

Multiple Banks Respond to Consumer Lending Rate Cut!

On July 31st, the State Council held a meeting to deploy the implementation of personal consumer lending rate cut policies and service industry financing rate cut policies. The meeting emphasized that cutting interest rates on personal consumer loans and service industry financing would help reduce residents' credit costs and service industry financing costs, thereby boosting consumption potential and market vitality.

Since August, major banks and some joint-stock commercial banks have responded to the policy. The Industrial and Commercial Bank of China has stated that it is actively pushing forward with the organization and implementation of personal consumer lending rate cut policies, adhering to market-oriented and law-based principles, optimizing loan application processes, and simplifying procedures.

The Agricultural Bank of China has expressed its commitment to preparing for the policy's rollout and ensuring that it accurately and efficiently transmits benefits to individual consumers and service industry entities.

The Bank of Communications has announced that it will launch a "Supporting Consumption" special action plan, which includes six key actions and 35 specific measures. The bank will also establish a comprehensive brand for personal loans called "Bank of Communications Consumer Loans" to enhance consumer access to policy benefits.

Postal Savings Bank has stated that it will leverage its extensive network of branches across the country to reduce residents' credit costs, ensure timely and efficient transmission of policy benefits to consumers, and safeguard financial stability.

China Construction Bank has emphasized the importance of optimizing financial services and risk management measures, simplifying procedures, and ensuring accurate and efficient policy implementation. The bank will also continue to strengthen cross-departmental coordination and financial supervision to prevent risks and ensure transparent and efficient use of funds.

Northeast Securities Research Team believes that if the interest rate cut on consumer loans is prolonged enough, it can achieve the goal of reducing real interest rates, weakening savings incentives, and increasing current consumption. Additionally, this policy also benefits banks by allowing them to increase their lending scale without pursuing low-end customers, thereby alleviating non-performing loan pressures.

Su Shang Bank's research fellow, Gao Zhengyang, has pointed out that the key to implementing the rate cut policy is to accurately interface with market demands and design targeted lending products around key consumption scenarios. The bank can also simplify application procedures, reduce the threshold for residents and small micro enterprises, and strengthen digital services.

Some Provinces Have Already Implemented Rate Cut Policies

Although the detailed implementation plan has not been released yet, reporters have noticed that some provinces and cities have already implemented personal consumer lending rate cut policies. For instance, Sichuan Province, Chongqing City, Hangzhou Yuhang District, etc., have all had such experiences. From practice, it can be seen that different regions have varying approaches, with interest rates mostly around 1.5%.

For example, Sichuan Province has implemented a rate cut policy for personal consumer loans, which includes supporting residents' purchases of cars, electronics, home renovation materials, and household appliances. The provincial government has allocated funds to support banks in providing loans to eligible consumers.

According to the Sichuan Provincial Government's website, as of April 8th, the province had already disbursed over 58 million yuan in financial subsidies to support local banks' consumer lending activities.