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China moves closer to 'riskiest' step with removal of loans cap

The People's Bank of China has indicated that a cap on deposit rates is likely to be scrapped in the second half of the year.


CHINA has taken one of its biggest steps in banking reform, moving to end a two-decade-old rule that has capped lending relative to deposits as Premier Li Keqiang seeks to usher in market-based economics.

An amendment to the banking law will remove the 75 per cent limit,