- Analytics
- News and Tools
- Market News
- China deposit rate reform to have limited impact - industry body
China deposit rate reform to have limited impact - industry body
Reuters reports that an industry body overseeing rates said that China’s reforms to the way banks calculate deposit rates will have only a limited impact on financial institutions and depositors, and banks do not need to sharply adjust deposit rates.
The body said the previous practice of multiplying the benchmark rate helped push up long-term rates and led to competition among banks to lure deposits by raising rates or unveiling innovative products.
From Monday, June 21, China will allow banks to set ceilings on deposit rates by adding basis points to the benchmark rate, a shift from the previous practice of multiplying the benchmark rate, the Self-Disciplinary Mechanism for the Pricing of Market-Oriented Interest Rates said.
Ceilings on banks’ deposit rates with maturities of more than one year have declined following the reforms, while ceilings on banks’ time deposit rates with maturities of six months or less have risen, according to the body, which is supervised by the People’s Bank of China (PBOC).
© 2000-2024. All rights reserved.
This site is managed by Teletrade D.J. LLC 2351 LLC 2022 (Euro House, Richmond Hill Road, Kingstown, VC0100, St. Vincent and the Grenadines).
The information on this website is for informational purposes only and does not constitute any investment advice.
The company does not serve or provide services to customers who are residents of the US, Canada, Iran, The Democratic People's Republic of Korea, Yemen and FATF blacklisted countries.
Making transactions on financial markets with marginal financial instruments opens up wide possibilities and allows investors who are willing to take risks to earn high profits, carrying a potentially high risk of losses at the same time. Therefore you should responsibly approach the issue of choosing the appropriate investment strategy, taking the available resources into account, before starting trading.
Use of the information: full or partial use of materials from this website must always be referenced to TeleTrade as the source of information. Use of the materials on the Internet must be accompanied by a hyperlink to teletrade.org. Automatic import of materials and information from this website is prohibited.
Please contact our PR department if you have any questions or need assistance at pr@teletrade.global.
Bank transfers
