2  BIS Review 88/2005  Fourth, market-based interest rate reform should be promoted. Under the leadership of the State Council, the People’s Bank of China has gained important progress in advancing the market-based interest rate reform in recent years. In the days to come, we will continue to deepen the reform process.
Determining interest rate following market principles will enable the lending institutions to better cover their risks and thus to improve their credit services to the small and medium-sized clients. Fifth, as Mayor Wang just mentioned, great efforts should be made to more effectively promote micro credit business.