China’s banking regulator redefines LDR to spur lending

HONG KONG – The decision of the China Banking Regulation Committee (CBRC) to revise the calculation method for banks’ regulatory loan-to-deposit ratio (LDR), effective July 1, is expected to stimulate banking lending to the real economy, in particular to SMEs, says BBVA Bank.

BBVA says the new calculation method reflects the authorities’ resolution to push forward interest rate liberalisation, and to open the banking sector to foreign capital. www.bbvaresearch.com (ATI).