The major bank's mortgage re-pricing strategies in response to the Reserve Bank's decision to cut the cash rate by 25 basis points will add three to five bps to their margins, an analyst has estimated.In a note to clients, Macquarie Securities said the re-pricing could add two to three per cent to big bank earnings.Following the RBA decision, ANZ announced that it would cut its standard variable mortgage rate by 12 bps, Commonwealth Bank said it would cut its SVR by 13 bps, NAB by ten bps and Westpac by 14.Suncorp joined the big banks, announcing that it would cut its SVR by ten bps and its business rate by 15 bps.Macquarie said the banks would retain seven to ten bps of the next couple of rate cuts.But Macquarie cautioned that the banks lacked a "rational approach to front book pricing" and this left them vulnerable to margin decline in future.Macquarie also said it expected deposit competition to put pressure on margins.Macquarie said: "While we believe that selected deposit pricing changes are likely to be unwound over time with limited impact on profitability, we expect banks funding margins to contract as competition for household deposits intensifies in the lead-up to net stable funding ratio implementation in 2018."ANZ increased term deposit rates by up to 75 bps, CBA by up to 55 bps, NAB by as much as 85 bps and Westpac by 55 bps.NSFR seeks to ensure that long-term assets are financed with at least a minimum of stable funding. Stable funding is the portion of an authorised deposit-taking institution's capital and liabilities expected to be a reliable source of funds over a one-year time horizon.In broad terms, NSFR will force banks to rely more on deposits (especially term deposits) as a funding source and less on short-term wholesale funding.NSFR will apply to only a small number of large ADIs (the liquidity coverage ratio rule applies to 15 ADIs).