Exclusive: Chinese Banks Face Curbs on High-Yield Interbank Deposits

Chinese banks could face new curbs on high-yield interbank deposits under rules being tested that would link rates to the Shanghai Interbank Offered Rate (Shibor), as regulators seek to curb funding costs, Caixin has learned.

Under the proposed framework, which is expected to take effect in the third quarter, interbank time deposit rates exceeding the corresponding Shibor tenor by more than 10 basis points could be classified as high-yield deposits, according to sources familiar with the matter.