China removes regulation on loan-to-deposit ratio

BEIJING -- China's top legislature on Saturday adopted an amendment to the Law on Commercial Banks, removing a 75 percent loan-to-deposit ratio stipulation.

The ratio will instead be regarded as a liquidity-monitoring indicator, according to the amendment, which was voted by the National People's Congress Standing Committee at the end of a bimonthly legislative session that started on Monday.

China has kept the 75-percent ratio since the law was enacted and put into effect in 1995.

The amendment will take effect on Oct 1.