Abstract: Based on the data of 88 local banks in China from 2011 to 2017, this paper explores the impact of banking structure on deposit interest rates of local banks. The research shows that the banking structure has a significant impact on the local banks’ deposit interest rates. In terms of reference model, the higher the market concentration, the higher the local banks’ average deposit interest rates; in terms of product dimension, the increase of market concentration will significantly increase the interest rate of time deposit, but it has nothing to do with the interest rate of demand deposit; in terms of market boundary, the increase of market concentration at provincial level can significantly promote the average deposit interest rate, while no significant effect on the market concentration at prefecture?city?level; in terms of strategy groups, the increase of market concentration of local banks has significantly increased local banks’ average deposit interest rates, while no significant influence is found on the market concentration of non-local banks; in terms of time dimension, the influence of market concentration on local banks’ average deposit interest rate is gradually strengthened year by year. With the gradual abolition of the dual-track interest rate system and further opening up of the financial industry, local banks need to improve the deposit pricing mechanism as soon as possible, so as to prevent the risk of deposit interest rates.

Key words: deposit interest rate liberalization; banking structure; market concentration; local banks’ deposit interest rates