China’s banking regulator on Monday said it will ease rules on banks’ loan-to-deposit ratios in a bid to free up more funds to support economic growth, The Wall Street Journal reported. Under current rules, Chinese banks must keep their loan-to-deposit ratios below 75%. The China Banking Regulatory Commission said in a statement that it will hold to the 75% ratio but that it will adjust the way it is calculated to allow banks to lend more cash. Loans will be classified more strictly, and deposits defined more broadly, effectively making for a relaxation of lending conditions.
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