Shanghai Securities News reports (via MNI):
- The China Banking Regulatory Commission has selected several banks, including the country’s biggest five, to test the impact of its loosening of the loan-to-deposit ratio
- The 75% ratio remains in place, but the CBRC has adjusted its definition of loans to boost lending to rural areas and small businesses.
- Economists expect the adjustment will lower financing costs for the real economy and weaken the development of shadow banking
