Chinese banks are urging the central bank to let them lend out more of their deposits, The Wall Street Journal reported, citing unnamed sources. The profitability of the China’s big banks has come under increasing pressure as a rare drop in bank deposits is forcing lenders to curtail lending or look for more expensive sources of financing. In addition, bank executives say that a planned deposit-insurance system and further cuts in interest rates also have the potential to reduce banks’ profit margins. Lian Ping, chief economist at Bank of Communications (3328.HKG, 601328.SHA), said the ratio should be reduced to an “appropriate” level to help banks and support the economy.
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