Dai Xianglong, president of the People's Bank of China (PBOC) noted
recently that effective measures would be carried out to encourage
the development of industrial investment fund and various types of
direct financing.
Measures would also be carried out to promote enterprises to
increase their capital amount and optimize capital structure. Being
in line with the development of macro-economy, ratio of reserves
against deposit, and deposit and loan rates should remain
unchanged.
He
deemed that the stable currency policy should continue to be
carried out. Measures of currency policy must be put into effect.
Besides, more support should be provided to medium- and small-sized
enterprises, and hi-tech enterprises. The development of industrial
investment fund and various types of direct financing should be
accelerated.
He
also denoted that in order to carry out the interest rate
magnetization reform steadily, the interest rates should be set
according to the individual loans, capital balance, and interest
rate management. Before carrying out in all credit associations it
may be tried out in small area. The range of interest rate float in
big cities would be widened. The interest rate of general deposit
would be controlled, while that of large-scale loans would be
flexible.
The modern banking system should be established. PBOC will support
state-owned commercial banks to reform. The finance industry would
be more open to the international market, and more importance
should be attached to the relation between domestic currency and
foreign currency, interest rates and foreign exchange rate.
(China Daily)