BEIJING, Dec 22 (Reuters) - Bank of China and the Agricultural Bank of China have cut interest rates on some deposits from Friday, according to the banks' websites.
Rates for 1-year and 2-year time deposits were cut by 10 basis points (bps) and 20 bps, respectively, and rates for 3-year and 5-year time deposits were cut by 25 bps.
Industrial and Commercial Bank of China (ICBC), China's largest lender by assets, announced on Thursday it would cut interest rates on some deposits, while sources with knowledge of the matter also said on Thursday that some major Chinese commercial banks would cut time deposit rates on Friday.
The cuts could offset pressure on banks' net interest margins - a key gauge of profitability - and provide room to reduce lending costs as the government urged banks to support the economy. (Reporting by Liz Lee and Shanghai newsroom; Editing by Leslie Adler and Edmund Klamann)
