pboc decision, 2005-03-25
However, constrained by the existing institutional deficiencies associated with unsatisfactory financial environment, internal cost accounting and performance evaluation, pricing capability possessed by the financial institutions has yet to satisfy the requirement of interest rate liberalization, and is likely to encourage financial institutions to engage in disorderly price competition and extend inefficient loans, leading to a decline of their asset quality and competitiveness as well as the sound and sustainable development of the financial sector.
Sentiment: neutral
Topic: mp_interest_rate