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China to adjust loan-to-deposit ratios for banks in Shanghai free trade zone

SHANGHAI, Sept 29 (Reuters) - Chinese banking regulators will adjust loan-to-deposit ratios and other regulatory requirements for banks in the Shanghai free trade zone which formally opened for business on Sunday, a senior banking regulator said.

Liao Min of the Shanghai branch of the China Banking Regulatory Commission made the comments during a press conference following the opening ceremony.

The government has said it plans to use the zone, formally named the China (Shanghai) Pilot Free Trade Zone, as a test bed for further reforms in the world's second largest economy.

On Friday the country's cabinet published its official planning document for the zone, proposing a range of changes including loosening of the state's grip on the currency market and banking system.