Regulatory requirement makes foreign banks in China race for cash

The Chinese Banking Regulatory Commission’s 75% loan-to-deposit ratio requirement is giving banks a tough time.

According to a Reuters report, HSBC Holdings and Citigroup already met the LDR requirements but some are still striving to meet the requirement.

In the report, a banker at a foreign bank said, “For a wholesale bank, the 75 percent LDR is a big headache. It limits our ability to expand our lending business but I suppose we can't complain since it's a uniform rule across the sector and we are playing ball in their field."

View the full report here.

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