Freeing up of rates not on agenda for this year

Expert says PBOC's plan for deposit insurance system is unnecessary

BEIJING - China is unlikely to liberalize deposit interest rates this year, and the deposit insurance system that the central bank plans to establish isn't necessary for the economy, a senior official told China Daily.

"Deposit insurance is not a must for interest rate liberalization, and it doesn't accord with the real condition of the banking industry in China," said Yang Zaiping, executive vice-president of the China Banking Association and an inspector of the China Banking Regulatory Commission (CBRC).