Breakthrough on the rules of bank credit in China. The Central Bank announced the removal of the interest rate control directives applied by banks in the provision of credit. A move, reports Dow Jones, which liberalizes a key aspect of bank credit: up to now Beijing has imposed a minimum threshold, equal to 70% of official rates, below which credit institutions could not go.
The central bank said that the decision, effective from tomorrow, will reduce financing costs for companies and improve resource allocation processes, supporting the real economy and adjustment processes. However, the thresholds imposed on deposits and mortgage rates have not been changed.
