Latest News:  

English>>Business

CBRC may unveil options after ratio study

By Hu Xiaocen   (Shanghai Daily)

10:03, March 06, 2013

CHINA'S banking regulator is doing an in-depth analysis of the rules on loan-to-deposit ratio and may unveil alternative measures to better supervise the sector, the head of the watchdog said in Beijing yesterday.

The loan-to-deposit ratio regulates the maximum amount of loans a lender can extend based on the deposits it holds for a certain period of time. The ratio is now capped at 75 percent.

Shang Fulin, chairman of the China Banking Regulatory Commission, pointed out that some small banks have failed to meet the requirement and the regulator is studying whether to introduce alternative steps to supplement the existing rules.

Banks face mounting pressure from eroding margins as China seeks a more liberal interest rate regime. Meanwhile they compete aggressively for deposits as the central government promotes domestic consumption which may see fewer consumers saving. Banks regularly appeal to the CBRC to ease the controls, arguing that more lending will generate higher profits and underpin the nation's economic growth.

Commercial lenders on the mainland maintained the loan-to-deposit ratio at 65.3 percent by the end of last year, 0.5 percentage point up from a year earlier, but still below 75 percent, the CBRC said.

Shang also said the CBRC will introduce credit policies in response to the latest property market controls.

Earlier, Yi Gang, deputy governor of the central bank, said discussions are being held on whether borrowing costs should be raised for homebuyers in regions where housing prices are rising too fast.

The State Council said last Friday the 20 percent tax on profit from selling resale homes should be strictly levied.


We recommend:

Tmall to sell imported milk powder online

China's jumbo jet C919 expected to fly

More loans extended to support agriculture

Direct trade in RMB increases in Thailand

Online advertising surges to $11.7 billion

China seeks economic transformation

Email|Print|Comments(Editor:MaXi、Liang Jun)

Leave your comment0 comments

  1. Name

  

Selections for you


  1. Afghan national army holds military exercise

  2. Ship-borne helicopters taking off and landing

  3. Venezuelan President Hugo Chavez dies

  4. Quake hits China's Yunnan, 30 injured

  5. Beautiful journalist reporting CPPCC

  6. Two sessions: Journalists on mission

  7. Dancers unlimited by disabilities

  8. China names Beckham as soccer ambassador

  9. China's richest man sets his sights on foreign projects

  10. Qihoo 360 accused of stealing user info

Most Popular

Opinions

  1. China has its own Golden Raspberry Awards
  2. Spoiled brats spring from pampering parents
  3. A smile can succeed where a scowl fails
  4. Reducing income inequality an urgent task
  5. Why media turns attention to 'two sessions'
  6. New glories for China in striving for nat'l renewal
  7. Home is where the heart is
  8. Are US, N. Korea playing 'basketball diplomacy'?
  9. Who will attend China's upcoming 'two sessions'?
  10. CPC adopts list of state leadership candidates

What’s happening in China

Missing baby killed in Changchun | Photos: Local residents mourn for killed baby

  1. Students recommend ren as message to the world
  2. Majority of post-90s students go abroad to study
  3. China stresses farmers' rights in land transfers
  4. Joint effort key to curb poaching
  5. Internet offers new ways for citizens to lend a hand