Commercial banks' net interest spreads rose steadily in the second quarter of this year for the first time in four years. On August 14, the General Administration of Financial Regulation released data on the main regulatory indicators of the banking and insurance industry for the second quarter of 2026. In the second quarter of 2026, the net interest spread of commercial banks was 1.41%, up 0.01 percentage points from 1.40% in the first quarter. Looking back, after commercial banks' net interest spreads fell below 2% to 1.97% in the first quarter of 2022 and entered a downward channel, the net interest spreads of the industry continued to be under pressure. After stabilizing at 1.42% for three consecutive quarters in 2025, it declined further to a low of 1.40% in the first quarter of 2026. “This slight change may mean that the net interest rate spread has continued to decline unilaterally since 2022 and has bottomed out. It is also slightly better than the market's previous expectations of a slight month-on-month decline.” CMB chief economist Dong Ximiao said.

Commercial banks' net interest spreads rose steadily in the second quarter of this year for the first time in four years. On August 14, the General Administration of Financial Regulation released data on the main regulatory indicators of the banking and insurance industry for the second quarter of 2026. In the second quarter of 2026, the net interest spread of commercial banks was 1.41%, up 0.01 percentage points from 1.40% in the first quarter. Looking back, after commercial banks' net interest spreads fell below 2% to 1.97% in the first quarter of 2022 and entered a downward channel, the net interest spreads of the industry continued to be under pressure. After stabilizing at 1.42% for three consecutive quarters in 2025, it declined further to a low of 1.40% in the first quarter of 2026. “This slight change may mean that the net interest rate spread has continued to decline unilaterally since 2022 and has bottomed out. It is also slightly better than the market's previous expectations of a slight month-on-month decline.” CMB chief economist Dong Ximiao said.