The rise in net-interest margin was probably because lenders managed to keep deposit rates under control while not extending favorable-rate loans at a time of an economic slowdown, said Jin Lin, an analyst with Orient Securities. By doing so, banks are able to keep net-interest margin at a healthy
"It's inevitable that banks' profit growth slows, given the interest-rate liberalization would hurt their net-interest margin," a primary gauge of banks' lending profitability, said Orient Securities analyst Jin Lin.
Date: Mar 24, 2013
Category: Business
Source: Google
China's Stocks Rise on Factory Growth, Paring Weekly Loss; Air China Gains
Net interest margin growth may slow in the second quarteras rising costs of deposits would erode yields on lending, Jin Lin, a banking analyst at Orient Securities in Shanghai, said byphone. Banks are under pressure to lure deposits to meet dailyloan-to-deposit ratios.
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