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

Shanghai

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, the State Council said on its website on Wednesday. The Standing Committee of the National People's Congress needs to give the nod at its meeting in March.