The head of the People's Bank of China, Dai Xianglong, said in an interview with China Securities Journal that China would steadily promote market-oriented reform of interest rates. Steps towards the reform include a pilot programme to float interest rates on deposits in rural areas, where credit co-operatives played a larger role than banks. Banks would be given wider scope to vary interest rates on yuan loans, while market forces would be allowed a bigger role in determining interest rates on foreign currency loans and interbank lending.