27-09-2013, 10:02 AM
Banking sector's reform in China continue...
China unveils new measures to free up interest rates
BEIJING — China will soon allow banks to price loans based on market benchmark rates and let the lenders launch certificates of deposit (CDs) to pave the way for liberalising deposit rates, the central bank said yesterday.
“We will steadily push forward market-oriented interest rate reforms,” said People’s Bank of China Vice-Governor Hu Xiaolian, adding that these would be near-term tasks but not giving a time-frame.
The central bank will expand benchmark rates from the money market to credit markets and organise big banks to offer lending rates to their high-quality clients to set the benchmark borrowing costs for the industry.
The issuance of CDs in the interbank market and the expansion of market-based pricing of debt products, will “create conditions for steady and orderly liberalisation of deposit rates”, Ms Hu said.
Chinese leaders are seeking to steer the world’s second-largest economy towards a growth model that relies more on domestic consumption and gradually allow market forces to play a greater role. REUTERS
http://www.todayonline.com/business/chin...rest-rates
China unveils new measures to free up interest rates
BEIJING — China will soon allow banks to price loans based on market benchmark rates and let the lenders launch certificates of deposit (CDs) to pave the way for liberalising deposit rates, the central bank said yesterday.
“We will steadily push forward market-oriented interest rate reforms,” said People’s Bank of China Vice-Governor Hu Xiaolian, adding that these would be near-term tasks but not giving a time-frame.
The central bank will expand benchmark rates from the money market to credit markets and organise big banks to offer lending rates to their high-quality clients to set the benchmark borrowing costs for the industry.
The issuance of CDs in the interbank market and the expansion of market-based pricing of debt products, will “create conditions for steady and orderly liberalisation of deposit rates”, Ms Hu said.
Chinese leaders are seeking to steer the world’s second-largest economy towards a growth model that relies more on domestic consumption and gradually allow market forces to play a greater role. REUTERS
http://www.todayonline.com/business/chin...rest-rates
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