Chinese banks must have at least 60 percent of their net cash in highly liquid assets by 2014, the China Banking Regulatory Commission (CBRC) said in statement on its website on Friday. The ratio will rise by 10 percentage points per year from 2015 until it reaches 100 percent by 2018, the banking regulator said, citing a set of public consultation papers about the liquidity risk management of commercial banks. The lenders’ loan-to-deposit ratio should be no higher than 75 percent, the CBRC said. The ratio will be fine-tuned along with financial and economic development, it said. The CBRC also urged banks to do regular stress tests on liquidity management.
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