China’s draft regulations for a bank deposit insurance system could see full interest rate liberalization in as little as two years, but slowing growth might impede reform measures, analysts say.
On Sunday, China’s cabinet unveiled draft rules for a deposit insurance system that would cover deposits of up to 500,000 yuan, or around $81,300, for individual and commercial depositors. According to the People’s Bank of China (PBOC), the system would cover 99.6 percent of all depositors.
“Deposit rate insurance has been talked about for 20 years, I think the fact that it’s come out now reflects how hard it was to get this reform pushed through,” Alaistair Chan, Economist at Moody’s Analytics, told CNBC on Monday.
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