China’s State Council released a plan on Tuesday detailing a plan to launch a deposit-insurance system covering up to RMB500,000 (US$80,550) per bank for businesses and individuals this May, The Wall Street Journal reported. The move is aimed at better disciplining lenders and their customers and is seen as a prelude to freeing up government-controlled interest rates on bank deposits, eventually allowing money to freely flow into and out of China. More than 99% of depositors would be covered, according to central-bank officials, though little detail was given on how banks would be charged to fund the insurance program.
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