China's banks takes next step in rate reform push

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China's top banks had been expecting to get negotiable certificates of deposit (NCD) that is worth tens of billions of yuan. The approval for the NCDs was said to be issued in as early as next month. This was another step for the banks towards the developing market identified interest rates.

NCD's would allow banks to access big amounts of funds. These funds are at stable costs and would provide an alternative to borrowing from the inter-bank sector. The latter is where fund costs could be volatile. Each bank planned an NCD issuance worth USD1.63 billion with single certificates value left unknown, said one source.

China's top financial institutions that submitted NCDs included the Industrial and Commercial Bank of China, Agricultural Bank of China, Bank of Communications, Bank of China as well as China Construction Bank. This was according to sources familiar with the development that told Reuters.

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China, Bank of China

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