Series of policy changes loom for financial institutions

Regulators are expected to further cut interest rates and reserve requirement ratios, ease the rules on loan-to-deposit ratios and continue opening up the financial sector by giving a green light to the establishment of more private banks this year. Here are some policy changes that economists and banking analysts are widely expecting:

Changing rules on loan-to-deposit ratio calculation

Starting on Jan 1, the central bank eased the stringent loan-to-deposit ratio requirement for commercial banks to leave more liquidity available for lending.