China lift bank loan interest restrictions

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TLCBonaparte wrote on 2013-07-20 20:03

http://www.nytimes.com/2013/07/20/business/global/china-liberalizes-lending-rates.html?_r=0

I heard this one from my dad in China. I don't know why people think it is such a good thing. This makes it possible for banks to charge ridiculous interest rate to people borrowing loans. It's open season on small business investors. Even "free economic" countries like Canada have interest restriction (50% max I think, or 20). What's stopping banks from having rate like loan sharks?
Yoorah wrote on 2013-07-21 00:51

Haven't read the article, but I'm guessing they're saying it's a good thing because it will raise interest rates and therefore cool the overheating real estate market in China. It's one of the major weaknesses in their economy right now.