New regulator means new focus for the PBOC

The creation of a new banking system regulator allows the People's Bank of China to concentrate on interest rate reform.

Source: Dow Jones

In the past five years, China's central bank has been caught between the conflicting demands of introducing an interest rate system that allows lenders to price risk and on the other hand protecting the country's debt-wracked state banks from their inability to withstand competition.

To sustain China's economic growth which has averaged an annual rate of 7.