(Reuters) – Chinese regulators have asked the country’s banks to lower the rates they pay to deposits from other financial institutions to free up funds to boost the economy, Bloomberg News reported on Thursday, citing people familiar with the matter.

China’s interest rate self-disciplinary mechanism, a supervisory body overseen by the central bank, said banks should benchmark the interbank deposit rate against the 7-day reverse repo rate, currently set at 1.5% annually, Bloomberg News said.

Some banks paid an annual rate of 1.8% or above to attract savings from financial counterparties, the report said.

The central bank did not immediately reply to a Reuters request for comments.

The move aims to help lenders contain excessive deposit costs so they can do more to support the real economy.

China’s major lenders last month lowered interest rates on deposits across the board for the second time this year, a move to ease pressure on net interest margins (NIM) – a key gauge of profitability.

Banks‘ NIM has narrowed to record lows as they are pushed to offer cheaper loans and lower mortgage rates as part of the nation’s stimulus package.