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The Central Bank Raised The Deposit Reserve Ratio For The Sixth Time This Year

2010/12/11 9:08:00 681

Central Bank

   China People's Bank of China On the evening of the 10th, it was announced that it was decided to raise the RMB deposit reserve ratio of deposit financial institutions by 0.5 percentage points from December 20, 2010.


   This is the sixth time that the central bank has raised the deposit reserve ratio since this year, and also the third time in a month that it has announced an increase in deposits Reserve ratio 。


Previously, the central bank raised the RMB deposit reserve ratio of deposit financial institutions by 0.5 percentage points in January, February and May. Later, on November 10, it was announced that the deposit category would be raised from November 16 financial institution The RMB deposit reserve ratio was 0.5 percentage point, and on November 19, it was announced that the deposit reserve ratio would be raised again by 0.5 percentage point from November 29.


Analysts believe that the central bank has raised the reserve ratio so intensively to further strengthen current liquidity regulation, control bank credit supply and manage inflation expectations.


Data released by the Central Bank earlier showed that China's new credit in November significantly exceeded market expectations, reaching 564 billion yuan.


If we do not consider the previous differential increase for some banks, after this increase, the deposit reserve ratio of financial institutions has reached a historical high of 18.5%. It is roughly estimated that after this increase, the central bank can freeze the liquidity of the banking system by more than 300 billion yuan at one time.

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