Zone ratio cuts mulled

Banks in the Shanghai free trade zone may not have to abide by the 75 percent loan-to-deposit ratio and the required reserve ratio currently imposed nationwide.mini storage The two points are part of the package of liberalization being considered for financial institutions that will operate within the free trade zone, the 21st Century Business Herald reported yesterday. Small and medium-sized banks have to maintain an RRR of 16.5 percent while for big banks, the ratio is 20 percent. The rationale behind the proposed m迷你倉ves is that capital within the zone will mostly be derived from international institutions through interbank borrowing and the foreign exchange market. That would be different from the primary sources of capital for the mainland, which are the savings of residents and corporations. However, the People's Bank of China and the China Banking Regulatory Commission may set a quota and a list of financial products to avoid yuan speculation in the zone, which will kick off on Sunday, the report said. GARY CHAU 文件倉