China curbs high-yield structured deposits by companies: sources

BEIJING/SHANGHAI - China’s banking and insurance watchdog is telling banks to scale back on high-yield structured deposits marketed to companies, three sources told Reuters on Wednesday, seeking to redivert funds to real economic activity.

Some banks received verbal guidance from the regulator this week to downsize their structured deposits by the end of 2020, said the three sources who were familiar with the matter. But the yields they promise hurt their profitability, making the banks reluctant to reduce lending rates, which Beijing wants them to do in order to boost a virus-hit economy that contracted in the first quarter for the first time in decades.

Canada Canada Latest News, Canada Canada Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

Inside Net City, Tencent's 320-acre futuristic neighborhood in China - Business InsiderBusiness Insider is a fast-growing business site with deep financial, media, tech, and other industry verticals. Launched in 2007, the site is now the largest business news site on the web. Please don’t do this US should game up their infra they gotta stop aiding other countries and start aiding themselves. IMO
Source: BusinessInsider - 🏆 729. / 51 Read more »