Beijing: China will allow banks to price their loans based on market-based benchmark rates and will allow banks to launch certificates of deposit soon, the central bank said on Thursday.

“We will steadily push forward market-oriented interest rate reforms," Hu Xiaolian, a vice governor of the People’s Bank of China, said in a speech published on the central bank’s website,

Sources told Reuters in August that China’s top banks are expected to win approval for the issuance of tens of billions of yuan in negotiable certificates of deposit (NCD).

The central bank scrapped the floor on bank lending rates in July but it still keeps official benchmark rates. REUTERS