03 Jun '11, 6am

DTN Singapore: China toughens bank rules to stablilise money rates: SHANGHAI - A FURTHER Step in China's banking...

SHANGHAI - A FURTHER Step in China's banking reforms to manage loan-to-deposit ratios on a daily basis may push banks to balance lending more evenly and help stabilise money market liquidity and rates in the long run. A monetary tightening campaign in place since October to prevent asset bubbles and control hot money has caused money market rates to swing wildly, sparking concerns over the health of China's banking system and the sustainability of its growth. To avoid aggravating temporary cash shortfalls as banks rush to meet month-end loan-to-deposit requirements and payments for reserve requirement ratio (RRR) hikes, the authorities want to shift to a daily rather than monthly monitoring system for the loan-to-deposit ratios. This comes on top of a series of bank reserve ratio hikes and interest rate rises to curtail excessive liquidity and manage inflation - tough medi...

Full article: http://www.straitstimes.com/BreakingNews/Money/Story/STIS...

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China banker says yuan to be liberalised: report

channelnewsasia.com 03 Jun '11, 5pm

BEIJING : China is likely to significantly loosen its grip on the yuan in the next few years as Beijing seeks to make the ...