The People's Bank of China announced that from July 20, 2013, the control on loan interest rates of financial institutions will be fully liberalized  However, the marketization of interest rates can only be realized when the upper limit of deposit interest rates is lifted  If the government does not voluntarily relinquish its dominance, it will be difficult for market forces to function  Once the deposit rate ceiling is lifted, interest rate wars will start among banks, leading to increased financial risks
If financial risks rise, a deposit insurance system needs to be established
With the deepening of reforms, China will sooner or later truly realize the liberalization of interest rates.