China to widen deposit base for banks

BEIJING: The People's Bank of China (PBOC) will change rules governing how loan-to-deposit ratios are calculated at banks starting from next year, according to a copy of a central bank document seen by Reuters, in a move that will boost liquidity conditions.

The PBOC will include savings held by banks for non-deposit-taking financial institutions in banks' deposits, which will expand the base for calculating loan-to-deposit ratios, the document said. Sources with knowledge of the situation had told Reuters last week that the PBOC was weighing such a rule change.