China raises banking reserve ratio requirement to 13 per cent
China's central bank announced today that it would raise the reserve ratio requirement for commercial banking institutes to 13 per cent in a further effort to curb excessive liquidity.
By Agencies |
BEIJING: China's central bank announced today that it would raise the reserve ratio requirement for commercial banking institutes to 13 per cent in a further effort to curb excessive liquidity.
The People's Bank of China (PBoC) said in a statement on its website that it would raise the reserve ratio by 0.5 per cent as of October 25, in a move to "strengthen liquidity management in the banking system and check the excessive credit growth."
The reserve hike, which requires banks to set aside more money in reserves, was the eighth such rise this year.
Beijing is struggling to put the brakes on the world's fourth-largest economy which is expected to register double-digit growth over the first three quarters when gross domestic product (GDP) figures are released later this month.
The reserve hike comes after the central bank announced a 27 basis pont rise in deposit and lending interest rates on Septmber 14, the fifth interest rate hike of the year.
Despite repeated measures to cool growth largely driven by excess liquidity, China's economy expanded by a blistering 11.9 per cent in the second quarter after registering 11.1 per cent growth in 2006.
The People's Bank of China (PBoC) said in a statement on its website that it would raise the reserve ratio by 0.5 per cent as of October 25, in a move to "strengthen liquidity management in the banking system and check the excessive credit growth."
The reserve hike, which requires banks to set aside more money in reserves, was the eighth such rise this year.
Beijing is struggling to put the brakes on the world's fourth-largest economy which is expected to register double-digit growth over the first three quarters when gross domestic product (GDP) figures are released later this month.
The reserve hike comes after the central bank announced a 27 basis pont rise in deposit and lending interest rates on Septmber 14, the fifth interest rate hike of the year.
Despite repeated measures to cool growth largely driven by excess liquidity, China's economy expanded by a blistering 11.9 per cent in the second quarter after registering 11.1 per cent growth in 2006.
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