China’s State Council proposed this week to remove a legally binding rule that caps lending by commercial banks at 75 percent of their deposits. The move is expected to boost the supply of domestic credit and thereby stimulate economic growth, which has slowed recently.

The Chinese cabinet on Wednesday suggested amending the country’s banking law in order to adopt the loan-to-deposit ratio as a reference point rather than a regulatory statute. Additionally, a system would be set up to monitor the liquidity of banks.

“The move will enable financial institutions to increase lending to agriculture, small-, and micro-businesses,” state-run news agency Xinhua quoted the council as saying. The amendment will still need to be approved by the Standing Committee of the National People’s Congress.

According to financial news agency Bloomberg, the loan-to-deposit level for the entire banking industry in China was only about 66 percent by March this year.

China’s economy expanded by 7 percent in the first quarter of this year, the slowest pace in six years. The Chinese Government has launched a series of measures, including three interest rate cuts since November, to revive economic growth.