Market's deposit rates

At a recent news conference, Zhou Xiaochuan, governor of the People's Bank of China, said that the interest rates for deposits might possibly be marketized within one or two years.

After the interest rates for loans were liberalized last July, the liberalization and marketization of deposit interest rates will almost certainly be introduced; and when realized this will represent a giant step forward in the ongoing financial reform endeavor. However, more measures like breaking monopolies are needed to advance financial reform, says a Beijing Youth Daily editorial.

Marketization means competition. Concerning the banking market, it means various banks compete with each other for deposits and offer different interest rates for deposits so customers have a choice.