(ATF) – The People’s Bank of China has given a warning to banks, calling on them to strengthen oversight of interest rates on deposits.
The central bank announced on March 10 that the guaranteed rate of return offered by some banks on structural deposits was significantly higher than the general deposit interest rate.
Such moves, it said, were not conducive to maintaining the order of competition in the deposit market and should be regulated.
The People’s Bank of China recently issued a note to various branches and major financial institutions about strengthening the management of deposit interest rates.
It wants “self-discipline” to guide the market interest-rate pricing – to strengthen the management of deposit interest rates.
The PBoC called for banks to bring the guaranteed rate of return on structural deposits into the scope of “self-disciplined management”.
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