Banks are also lobbying regulators to introduce curbs on the growth of on-line funds offered by non-banks.
Ultimately, however, competition for deposits will drive up banks' funding costs and crimp profit margins this year.
As China gradually moves to liberalize deposit interest rates, banks will be forced to compete among themselves to attract customers, which means offering higher yields.
The development of new deposit-like money market products designed to compete with online rivals will further accelerate the trend toward higher funding costs.
"It's going to negatively affect bank margins. Costs will go up," said May Yan, Asia ex-Japan banks analyst at Barclays Capital in Hong Kong.
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