China Takes Steps to Liberalize Banking
China’s State Council announced plans to introduce an insurance program for domestic bank deposits. Beginning on May 1, 2015, the People’s Bank of China will offer insurance for corporate and individual consumer deposits for up to 500,000 yuan, approximately $80,000.
The move marks an important step towards opening up and liberalizing China’s banking sector. The new program is also expected to pave the way for China’s central bank to loosen its control of capital flows, interest rates and deposit rates. China hopes that the insurance system will attract foreign investors and reinforce the stability of the banking sector and its financial institutions.