CX Daily: Battle for China’s Deposits Pits Banks Against Regulators

Deposits /

In Depth: Battle for China’s deposits pits banks against regulators

Sources with knowledge of the matter told Caixin that in addition to preventing disorderly competition, the directive was also aimed at curbing “idle funds” (资金空转), a term that refers to money that isn’t being invested in the real economy but is circulating in the financial system or between businesses and financial institutions. Policymakers and regulators have repeatedly stressed the need to reduce these “idle funds.”