Net Interbank CD Financing Tops 1 Trillion Yuan in Three Months; One-Year Rate Hits 1.49%
Net financing of interbank negotiable certificates of deposit (CDs) exceeded 1 trillion yuan in the past three months, with the one-year issuance rate for state-owned and joint-stock banks rising to 1.49%, up nearly 5 basis points this month. Core excess reserve ratios of banks were low in May and June 2026. After net repayment of about 1.4 trillion yuan from January to April, net issuance surged to over 900 billion yuan in May-June and over 180 billion yuan in July. The PBOC released draft rules on June 26 allowing dynamic adjustment of issuance quotas. Over 190 banks have disclosed 2026 CD issuance plans, with the six largest banks planning total issuance of 10.76 trillion yuan, little changed from 2025.
Issuance plans for interbank negotiable certificates of deposit (CDs) have been slow to arrive, while net financing over the past three months has already exceeded 1 trillion yuan, accompanied by a new round of price increases. As of the latest data, the one-year interbank CD issuance rate for state-owned and joint-stock banks rose to 1.49%, up nearly 5 basis points this month, again approaching the 1.50% level.
In May and June 2026, banks' core excess reserve ratios stood at 0.51% and 0.52%, respectively, below the three-year averages of 0.82% and 0.99%. Looking at the primary issuance of interbank CDs, net repayment from January to April was about 1.4 trillion yuan, combined net issuance in May and June exceeded 900 billion yuan, and net financing so far in July has surpassed 180 billion yuan.
On June 26, the People's Bank of China released the "Interbank Negotiable Certificate of Deposit Management Measures (Draft for Comment)," explicitly stating that the filing quota can be dynamically adjusted based on macroprudential management requirements, the issuer's monetary policy implementation, prudent investment and trading in financial markets, and self-discipline in interest rate pricing. Since July, banks have been disclosing their 2026 interbank CD issuance plans one after another, with more than 190 banks having announced. The six large state-owned banks have a total planned issuance scale for 2026 of 107,553.5 billion yuan, a slight reduction of 14.25 billion yuan from 2025, with the overall volume basically remaining balanced.