reserve requirement ratio

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.

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

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%.

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

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

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

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.

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.

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.

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

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

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

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.

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.

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

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.

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.

China Raises Banks' Reserve Requirement Ratio