AsianFin--Deposit yields at numerous small and medium-sized Chinese banks have become inverted, with three-year deposit rates now surpassing those of five-year deposits, following recent interest rate adjustments, the 21st Century Business Herald reported on Friday.

Several urban commercial banks, including the Bank of Beijing, Bank of Shanghai, Bank of Jiangsu, Bank of Nanjing, and Bank of Ningbo, have lowered their deposit interest rates since the end of last month. In southern Guangdong province, at least 15 rural commercial banks have made similar cuts, according to incomplete statistics.

Most small and medium-sized lenders have reduced interest rates by five to 35 basis points, with more significant cuts for longer-term deposits. Consequently, their fixed-term deposit rates remain higher than those of state-owned banks, with differences reaching up to 85 basis points.

As a result, many joint-stock, urban, and rural banks now offer nominal rates on three-year deposits that are equal to or higher than those on five-year deposits.