Comments() 
Print 
Mail 
Large Medium SmallChina's banking regulator is planning on removing the requirement that the lenders' loan-to-deposit ratio must be under 75 percent, though the ratio will still be an important regulatory indicator, Economic Information reported on July 5, citing an anonymous person close to the China Banking Regulatory Commission.
The loan-to-deposit ratio is a measure used for assessing a bank's liquidity by dividing the banks total loans by the total deposits. A lower requirement on the ratio typically boosts lenders' ability to extend loans.
More bank loans might boost the country's economy. China's GDP growth slowed to a three-year low of 8.1 percent in the first quarter. Many economists believe that growth will slow to below 8 percent in the second quarter.
The report came after the People's Bank of China cut the benchmark interest rate and reserve requirement ratio, another requirement that regulates the lenders' lending ability.
gaochangxin@chinadaily.com.cn
Copyright 1995 - 2010 . 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: 20100000002731 
