China Banking Regulatory Commission, Circular on Revising the Basis for Calculating the Loan-to-deposit Ratios of Commercial Banks

中国银行业监督管理委员会关于调整商业银行存贷比计算口径的通知

July 15, 2014 | BY

clpstaff &clp articles &

CBRC relaxes restrictions on the loan-to-deposit ratios of commercial banks

Clp Reference: 3610/14.06.30 Promulgated: 2014-06-30 Effective: 2014-06-30

Issued: June 30 2014

Effective: as of date of issuance


Applicability: This Circular shall apply to commercial banks legally established in China, including Chinese-invested commercial banks, wholly foreign-owned banks and Sino-foreign equity joint venture banks. For rural cooperative banks, rural credit cooperatives and rural banks, matters shall be handled with reference to this Circular (Article 5).

Main contents: The China Banking Regulatory Commission shall implement regulatory assessment of the loan-to-deposit ratios of the renminbi business of commercial banks, and monitor the loan-to-deposit ratios of their combined renminbi and foreign currency business and their foreign currency business (Article 1).

When calculating the numerator (loans) in the loan-to-deposit ratio, six items shall be subtracted therefrom, including:

(1) micro and small enterprise loans corresponding to dedicated micro and small enterprise financial bonds; and

(2) loans corresponding to various other bonds issued by the commercial bank the remaining terms of which are not less than one year and in respect of which the creditors do not have the right to demand that the bank repay early (Article 2).

When calculating the denominator (deposits) in the loan-to-deposit ratio, the following two items shall be added:

(1) large-denomination negotiable certificates of deposit issued by the bank to enterprises or individuals; and

(2) the net amount, with a term of a least one year, deposited by the offshore parent of a foreign-funded bank with legal personality with such foreign-funded bank (Article 3).

clp reference:3610/14.06.30 issued:2014-06-30 effective:2014-06-30

This premium content is reserved for
China Law & Practice Subscribers.

  • A database of over 3,000 essential documents including key PRC legislation translated into English
  • A choice of newsletters to alert you to changes affecting your business including sector specific updates
  • Premium access to the mobile optimized site for timely analysis that guides you through China's ever-changing business environment
For enterprise-wide or corporate enquiries, please contact our experienced Sales Professionals at +44 (0)203 868 7546 or [email protected]