Recently banks have increased their.....>

CHINA PRESS: Recently banks have increased their certificates of deposit (CD)

rates to 40%-50%, in some cases even 55%, above the benchmark, reported Economic

Information Daily on Thursday. This is directly related to the PBOC's decision

to proceed with interest rate liberalization reform, which causes the upward

floating limit of CD rates to increase, the report said. Rising CD rates show

banks' pressures to get deposits have increased, said the report, citing Lu

Zhengwei, the chief economist at China Industrial Bank. 

***Comment: The CD interest rate ceiling, determined by market interest rate

pricing, has been relaxed under the guidance of the PBOC from 40%, 42% and 45%

higher than the benchmark CD rates - for the 'big four' state banks, larger

private stock-holding banks, and small regional banks, respectively - to 50%,

52% and 55% higher than benchmark rates.