USEUROPEAFRICAASIA 中文雙語Fran?ais
    Home / World

    PBOC considers relaxing interest rate rules

    By Wang Xiaotian | China Daily | Updated: 2013-01-08 07:55

    A Chinese central bank official has called for less restrictions on interest rates against a backdrop of worsening asset quality and shrinking profit growth among most lenders.

    To free up interest rates, China could raise or even remove its upper limits on banks' deposit rates, said Sheng Songcheng, head of the central bank's statistics department, in an article published in Caixin Magazine last week.

    "It could further expand or even remove the officially set floating range of medium- and long-term deposits, and then gradually expand the upper limit of short-term and small-sum deposits, until caps on such deposits are abolished," he said.

    Guo Tianyong, a professor at Central University of Finance and Economics, applauded the plan. "The path is reasonable and could fend off risks because long-term and big-sum deposits are relatively more stable funds for banks," he said.

    The People's Bank of China, the central bank, has been making efforts to liberalize interest rates as it promotes reform of the financial system and allows market forces to play a bigger role in determining the price of capital.

    In 2004, the bank removed its lower limit on bank deposit rates and permitted lending rates among lenders to be 10 percent lower than the benchmark rates.

    PBOC considers relaxing interest rate rules

    In June 2012, it allowed banks' deposit rates to be 10 percent higher than the benchmark rates, while cutting the lower limit of lending rates to 80 percent of the benchmark. In July, it further reduced the limit on lending rates to 70 percent.

    Major banks could play a role in stabilizing interest rates, and China could use Western banking practices as a model, Sheng said. "We need to form a reference interest rate that could be efficiently regulated by the central bank through open-market operations, and has a strong impact on the market," he said.

    Continued controls of interest rates could affect the stability of the yuan's exchange rate, and would bring risks to the foreign exchange market, he said.

    In addition, current low deposit rates have partly driven housing investment and led to speculative bubbles, said Stephen Green, chief China economist at Standard Chartered Bank. However, higher deposit rates and lower lending rates after the authorities remove controls could eventually squeeze bank profits, analysts said.

    Sheng warned that interest-rate liberalization would pose a greater risk to smaller lenders, as they would tend to raise deposit rates in the competition for funds, and prefer to extend riskier loans for higher profits.

    Guo said: "Small lenders need to strengthen their capability of controlling and managing risks. On the other hand, deposit insurance and a bank bankruptcy system should be established to prevent their risks from spilling over to all of society."

    A China Banking Association survey released in late December showed that more than 60 percent of the bankers surveyed said they believe the best time for the government to promote interest rate liberalization would be in three to five years.

    Further interest rate liberalization would come from certain financial institutions, and would be achieved by loosening price restrictions on alternative financial products, central bank Governor Zhou Xiaochuan said in November.

    wangxiaotian@chinadaily.com.cn

    (China Daily 01/08/2013 page14)

    Today's Top News

    Editor's picks

    Most Viewed

    Copyright 1995 - . All rights reserved. The content (including but not limited to text, photo, multimedia information, etc) published in this site belongs to China Daily Information Co (CDIC). Without written authorization from CDIC, such content shall not be republished or used in any form. Note: Browsers with 1024*768 or higher resolution are suggested for this site.
    License for publishing multimedia online 0108263

    Registration Number: 130349
    FOLLOW US
    久久久久中文字幕| 精品无码一区二区三区电影| 四虎影视无码永久免费| 亚洲Av无码乱码在线观看性色 | 精品无码三级在线观看视频| 亚洲国产中文字幕在线观看| 午夜无码中文字幕在线播放| 日韩精品无码AV成人观看| 五月婷婷在线中文字幕观看| 中文字幕有码无码AV | 亚洲AV中文无码乱人伦在线视色| 最新高清无码专区| 日韩欧美成人免费中文字幕| 最近高清中文字幕无吗免费看| 久久综合精品国产二区无码| 超清无码熟妇人妻AV在线电影| 最近中文国语字幕在线播放视频| 无码欧精品亚洲日韩一区夜夜嗨| 人妻丰满熟妇av无码区不卡| 亚洲精品成人无码中文毛片不卡| 亚洲日本中文字幕一区二区三区| 波多野结衣在线中文| 最近的中文字幕在线看视频| 日韩视频无码日韩视频又2021| 久久久久久无码Av成人影院| 无码人妻丰满熟妇区五十路百度| 国产成人麻豆亚洲综合无码精品| 中文字幕精品无码久久久久久3D日动漫| 无码AV中文字幕久久专区| 伊人久久无码精品中文字幕| 亚洲精品无码久久久久AV麻豆| 无码人妻精品一区二区三区99不卡| 成人无码区免费A∨直播| 国产激情无码一区二区| 精品国产a∨无码一区二区三区 | 日韩精品人妻系列无码专区| 亚洲AV无码第一区二区三区| 久久精品无码一区二区WWW| 成人午夜精品无码区久久| 亚洲精品无码MV在线观看| 无码人妻丰满熟妇区免费|