Smaller lenders look to reduce interbank liabilities

Some small-and medium-sized commercial banks reduced quotas that they reported to China's central bank concerning their plans to issue interbank negotiable certificates of deposit (CD) this year, as they tried to improve their liability structure by cutting their interbank liabilities.

Guiyang Rural Commercial Bank Co Ltd reported to the People's Bank of China, the central bank, to set a quota of 9 billion yuan ($1.3 billion) on its planned issuance of interbank negotiable certificates of deposit this year, down by 35 percent from the level of the previous year.

The quota reported by Shanghai Huarui Bank Co Ltd, one of the first batch of five pilot private banks nationwide, fell by 30 percent year-on-year to 4.9 billion yuan during the same period.