PBoC’s Zhou on market-based interest rate reform
Zhou Xiaochuan, the governor of the People's Bank of China, has set out some of the conditions necessary for market-based interest rate reform.
Zhou outlined eight conditions in total:
• allowing financial institutions with hard budget constraints to price their products in a competitive market. Conversely, financial institutions with soft constraints should be excluded from self-pricing their products to some extent;
• the setting of macroprudential regulation for eligible financial
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