Deputy Governor of Zhejiang Commercial Bank Luo Feng: Institutional deposits were once a shortcoming; now they have achieved remarkable results and made outstanding contributions

On March 31, the financial frontline news, Zheshang Bank held its 2025 annual performance briefing today. Regarding the structural adjustment of corporate business, Vice President Luo Feng stated that the core task is to stabilize the interest spread.

Luo Feng pointed out that within Zheshang Bank’s overall portfolio, corporate business accounts for a relatively large proportion, so maintaining the stability of corporate assets and deposit interest rates has a significant impact on the bank’s overall interest spread. By 2025, the bank will mainly make four adjustments on the asset side:

First, strengthen provincial credit issuance: last year, corporate loans issued within Zhejiang Province totaled 62.6 billion yuan, accounting for over 80% of new issuance.

Second, optimize the credit structure: over 40% of loans are directed toward science and technology innovation, green projects, and other areas related to the “Five Big Articles.”

Third, increase the circulation of liquid assets: the development of specialized supply chain finance is rapid, with the circulation of domestically tradable assets exceeding 300 billion yuan, reaching a three-year high.

Fourth, strengthen comprehensive income management: serve better clients, pursue comprehensive returns, and beyond credit, focus on fee income, settlement deposits, and overall returns.

On the liability side, Luo Feng revealed: “By the end of 2025, the interest-bearing deposit rate across the entire bank will be compressed to about 1.6058, roughly 1.61. This is nearly 35 basis points lower than at the beginning of 2025, indicating a very strong effort.”

Luo Feng introduced that in 2025, the average daily institutional deposits will reach 274.8 billion yuan, an increase of 37.4 billion yuan from the previous year, with an approximate growth contribution of 145%, showing significant results. He pointed out, “In the past, institutional deposits were a shortcoming in Zheshang Bank’s corporate business. We have been working to address this in recent years, and now the results are quite evident.”

Regarding the development of corporate business in 2026, Luo Feng clearly stated that the bank will implement the “1155” operational strategy across the entire bank, continuing efforts on both the asset and liability sides:

On the asset side, regionally, the focus will be on Zhejiang, the Yangtze River Delta, and other areas; industry-wise, guided by comprehensive industry research, with a focus on improving quality and efficiency of key industries, developing emerging industries, planning for future industries, and building the “415X” advanced manufacturing cluster in Zhejiang Province; in terms of client groups, mainly serving central state-owned enterprises, listed companies, and high-quality Zhejiang merchants; in terms of scenarios, focusing on developing supply chain finance, cross-border finance, syndicated mergers and acquisitions, and more.

On the liability side, continue the effective measures from the past year, increase scene-based deposit gathering, and strengthen settlement and account reconciliation, including expanding institutional business.