China Moves Closer to ‘Riskiest’ Step by Removing Loans Cap

China took one of its biggest steps in banking reform, moving to end a two-decade-old rule that has capped lending relative to deposits as Premier Li Keqiang seeks to usher in market-based economics.

An amendment to the banking law will remove the 75 percent limit, the State Council said on its website Wednesday. The Standing Committee of the National People’s Congress needs to give approval at its meeting in March.