The WSJ has an article out saying that Chinese banks have asked the PBOC to let them lend out deposits set aside for any financial troubles.
Chinese banks have put aside huge amounts to cover any financial turmoil but a drop in deposits is making lending conditions tough and expensive. Banks have to set aside 20% of deposits to the PBOC.
They also face higher costs from a new deposit insurance scheme.
Hmm, lending out deposits put aside for troubled times, what could possibly go wrong?
Full article (maybe gated) from WSJ here
