In my understanding, it means deregulation. But if the central bank deregulates deposit rate ceiling and lending rate floor when there is no other reliable benchmark to substitute them, the result could be worse. When is the right timing for deregulation? My answer is when a new benchmark matures.
Shibor is an important  BIS Review 12/2008  1  benchmark, on which I have high hopes in the process of making interest rate more marketbased. Interest rate floor and ceiling is likely to exist for some period. Can the market-based interest rate transformation process start with discount rate linking with Shibor? In fact, discount facilities are loans.