China's New Premier Signals Banking Reform, Faces Resistance

The scrapping of controls on lending rates is the first major economic reform launched under the government of President Xi Jinping, who took office this year. Xi and other leaders have promised an array of changes but until Friday no details had been released.

China said Friday it is ending controls on bank lending rates in a move toward creating a market-oriented financial system to support economic growth. China’s central bank has removed controls on lending, and will now let financial institutions self-regulate rates which were previously constrained by a 70 percent floor benchmark.