Banks lower interest rates to 3.5% following CBC rate cut

Ruby Ying, The China Post

Following Central Bank of China’s Thursday announcement to cut its rediscount rate by 25 basis points to a historic low of 3.5 percent, most of Taiwan’s major financial institutions revealed that they would lower their interest rates accordingly, though the extent of their rate cuts will not be decided until next week. The island’s 16 new banks such as Pan Asia Bank and ChinFon Commercial Bank announced yesterday that they would reduce the saving interest rate. On the other hand, Far Eastern International Bank acted opposite by announcing an increase in interest rates for one-year time deposits by 0.05 percent. Among the government-owned banks, Taiwan Cooperative Bank, Land Bank of Taiwan, and Bank of Taiwan, noted that their rate cut would range between 0.01 and 0.25 percent. As for the new banks, only Far Eastern Commercial bank decided to increase its time-deposit interest rate from 4.30 percent to 4.35 percent. It is reported that the bank is currently in need of cash. According to the Chinese-language United Evening New, Pan Asia Bank has lowered its interest rates for one-month, three-month, six-month, nine-month, and one-year time deposits to 3.75 percent, 3.9 percent, four percent, 4.15 percent, and 4.35 percent.

Meanwhile, ChinFon Commercial Bank has reduced the interest rate for demand deposits to 1.75, whereas cutting the rate for one-year, two-year, and three-year time deposits to 4.4 percent. Fubon Commercial Bank also reduced the demand deposit interest rate by 25 percentage points to 1.5 percent. The bank also cut the interest rate for one-month, three-month, six-month, nine-month, and one-year time deposits by 0.2 percent, respectively.