reserve requirement

The bank reserve requirement refers to deposits banks are required to set aside as a reserve, which reduces their lending ability.

Using exchange and interest rates as well as the bank reserve requirement ratio to ensure liquidity in the banking system.

He said the government moved early on cutting the reserve requirement ratio to give it some breathing room.

The so-called reserve requirement ratio is an important tool in China for limiting how much money can be lent by commercial banks.

This year already, authorities have raised the bank reserve requirement twice and increased the required down payment on land purchases.

The central bank uses monetary policy including reserve requirement system to regulate the money supply of a country.

The bank reserve requirement ratio will rise from 14. 5 per cent to at least 17 per cent by year end, Mr Sun says.

Since the beginning of last year, China has raised the bank reserve requirement nine times to soak up liquidity.

A more relaxed approach to open-market operations, or even a reduction in the reserve requirement ratio, would free up cash for lending.

In the last 12 months, the Central Bank has raised the bank reserve requirement ratio from 10% to the current 16%.

Beijing has so far relied heavily on so-called reserve requirement ratios for lenders as a policy tool.

After that, the government will raise the reserve requirement ratio for banks more frequently, he said.

The reserve requirement increase follows a number of less clear indications that the easy monetary policy was being reconsidered.

In a move last week that gave a major boost to global stocks, China announced it was cutting the reserve requirement for its banks.

'A higher reserve requirement ratio is not in a bank's interest, so it will naturally adjust its actions, ' Mr. Yang said.

However, until recently, the de facto reserve requirement had been set at 100%, because all deposits had to be redeposited at the People!

Prior to Thursday's data, it raised its reserve requirement ratio, forcing banks to set more money aside, rather than lend it.

In recent years, the reserve requirement rate has emerged as a primary tool for the central bank to fine-tune monetary policy.

A more extreme move, and one that has been rumored in the markets, would be to cut the reserve requirement ratio.

Note that August was the first month this year that was free of increases in either the reserve requirement ratio or interest rates.

To combat bad loans and hopefully stymie inflation, reserve requirement have been raised three times for Chinese banks.

But as a result, US-chartered banks could not get around the eurodollar reserve requirement by booking loans to domestic customers offshore.

By incrementally raising interest rates and reserve requirement ratio for banks, China has slowed down its inflation rate but only modestly.

To contain excessive money supply, the PBC has also hiked banks' reserve-requirement ratio 16 times over the past two years.

On Wednesday, Beijing cut the reserve requirement for China's banks in the face of falling property prices.

Experts on Chinese monetary policy said that the higher reserve requirement by itself would have little effect on Chinese banks.

China yesterday did what many economists expected it to, and cut both the lending rate and the reserve requirement on banks.

The reserve requirement is a bank regulation that sets the minimum reserves each bank must hold to customer deposits and notes.

The central bank also said it will cut the bank reserve requirement ratio by 0. 5% starting from December 25.

Another hike in interest rates or reserve requirement ratio is likely to take place next month.

For monsters like Industrial & Commercial Bank of China, four increases this year in the reserve requirement aren't a problem.

Asian stock markets on Thursday greeted the cut in the Chinese banks' reserve requirement ratio with a firm rally.

Beijing has also introduced other credit-control measures in recent months such as an increase in deposit reserve requirement.

China would have cut the reserve requirement ratio for banks eventually.

This week they increased banks' reserve requirement ratio by half a percentage point.

Accordingly, we see the reserve requirement cut as a decisive shift in policy stance.

A drop of 2. 6% Tuesday was triggered by the latest increase in the reserve-requirement ratio, which led banks to scramble for cash.

He predicted that the central bank would raise the reserve requirement ratio for banks again, possibly as soon as this weekend.

Under currentregulations, the reserve requirement against most transaction accounts is 10percent.

Reserve Requirement - The percentage of deposits that banks are required to keep in reserves and not give out as loans.

Few analysts were expecting an outright cut in the reserve requirement before the first quarter of next year, if then.

We expect additional reserve requirement hikes and another 100 basis points of rate hikes this year.

A cut in the reserve requirement ratio for 20 of the 214 is unlikely to move the aggregate monthly new loan numbers.

Will the latest increase in China's reserve requirement ratio put a brake on property prices?

In November, the People's Bank of China, the central bank, cut the reserve requirement ratio for 20 co-operative banks by a half point.

"We expect more reserve requirement cuts before the Chinese New Year [at the end of January]. "

However, these institutions must meet the 8% capital reserve requirement for their RMB loans.

In response, the People's Bank of China will slash banks' reserve requirement, but it will be to no avail.

The PBOC's reserve-requirement ratio has been raised five times since July 2006.

Funds borrowed by federal reserve banks in order to maintain the reserve requirement.

This is perhaps why the Deposit Reserve Requirement Ratio has been raised twice in recent months.

If the reserve requirement ratio is 10%, for example, a bank that receives a $100 deposit may lend out $90 of that deposit.

All they need to retain, under a10 percent reserve requirement, is $1000.

China's central bank today raised the reserve requirement ratio by 50 basis points to 15%, effective January 25, 2008.

The chance for further rate hikes this year is very small, and the room for further reserve requirement ratio hikes is also quite limited.

The reserve requirement ratio, for example, is specifically designed to control lending growth.

Consider that reserve requirement increases did little to slow lending by banks, which made $1. 2 trillion in new loans last year.

A record-high reserve requirement means another 20. 5 yuan are at the central bank.

Therefore, if we want to study reserve requirement system, we must have a profound understanding of China's money supply mechanism.

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Reserve requirement system in foreign currency

China Raises Banks' Reserve Requirement Ratio