BEIJING, June 16 (Reuters) - China's state planner urged banks in the capital Beijing to cancel an interest rate floor for corporate loans as soon as possible to reduce companies' borrowing costs, a state paper said on Friday.
Companies in Beijing have been unable to borrow from banks at a rate lower than 90 percent of the benchmark lending rate under the current rule, the China Securities Journal reported.
"We should lower the financing cost for companies through competition among commercial banks," the National Development and Reform Commission (NDRC) told the Industrial and Commercial Bank of China (ICBC) in a meeting, according to the paper.
The instruction was passed down from top leaders including Premier Li Keqiang and two vice premiers, Zhang Gaoli and Ma Kai, the newspaper said. (Reporting by Beijing Monitoring Desk and Yawen Chen; Editing by Richard Borsuk)