Contact Us

Address: Room 1502,No.69 Binlang Road (Green Lake Mansion), Xiamen City, Fujian Province, China
Tel: +86-592-5119628
Fax:+86-592-5067728
Mobile: +86-13306032088
              +86-13606019953
Contact: Leo Deng
Email: stone@chinetrade.com
            leo@chinetrade.com

News

Home > News > Content

China's Deposit Insurance Brings Floating Interest Rates Closer

Xiamen Chine Stone Co.,Ltd | Updated: Apr 02, 2015

China's deposit insurance brings floating interest rates closer

 

BEIJING -China's introduction of bank deposit insurance is ultimately expected to lead to deregulation of interest rates, signaling policy makers' commitment to financial reforms.

 

The central government announced on Tuesday that the scheme will begin on May 1, reimbursing savers if their banks suffer insolvency or bankruptcy. The scheme has been debated for nearly 20 years.

 

The reimbursement cap of 500,000 yuan ($81,500) covers around 99.6 percent of accounts inChina's banking system. Close to 12 times annual per capita GDP, the cap is more generous than the prevailing international standard of two to five times.

 

"Deposit insurance will pave the way for a market-based exit mechanism for banks and greater interest rate liberalization," said Qu Hongbin, chiefChinaeconomist at HSBC.

 

The move is expected to put paid to the widespread belief among investors that the government will invariably bail out banks and protect deposits. Deposit insurance can lower the possibility of a run on a bank and contain financial contagion.

 

Chinetrade.com (chinestone.com) is the 1st client of Alibaba in Fujian-Province.

 

Xiamen chinestone.com is a speciallized supplier of granite,marble and other natural stones. We have own stone factory in  Nan'an City, which is near to Xiamen port. Xiamen chinestone.com supply china g654 granite,g654 granite china,chinese g654 granite,g654 granite tile,g654 granite slab,g654 granite pavers,g654 granite step,g654 granite riser,g654 granite pavement,g654 granite kerbstone,g654 granite kerbs,g654 granite countertop,g654 granite swimming pool cope,g654 granite pool coping stone,g654 granite cobble,g654 granite cube, flamed g654 granite tile, flamed g654 granite slabs,flamed g654 granite slabs,g654 granite big slab,g654 granite gang saw slabs,g654 granite gangsaw slabs, g654 big slabs, g654 slabs, g654 tile, granite g654,etc.

Copyright © Xiamen Chine Stone Co.,Ltd  E-mail:stone@chinetrade.com
TEL:+86-592-5119628  FAX:+86-592-5067728

Xiamen Chine Stone Co.,Ltd