SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Technology Stocks : C-Cube
CUBE 36.52+0.3%Dec 12 3:59 PM EST
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: BillyG who wrote (26480)12/10/1997 7:09:00 PM
From: John Rieman  Read Replies (1) of 50808
 
People' Bank of China frees up banking reserves....................................

scene.co.cn

Bank Reserves

Despite the government's fear of inflation, the People's Bank of China (PBC) is expected to cut the amount of reserves that commercial banks are required to keep in the country's central bank. According to Dai Xianglong, the banks will now be required to keep 10 percent of their reserve deposits with the PBC, compared to 13 percent previously. The new reserve rate will give banks more flexibility and extra funds with which to make loans. "The 13 percent official reserve requirement is too high and will not only adversely affect the ability of China's commercial banks to compete with foreign banks but also will slow foreign banks' expansion in China," said a PBC economist. By cutting the reserve rates, the PBC will allow more than RMB 250 billion to enter the money supply, thus causing inflationary pressures. PBC officials said the risk could be offset by recalling some commercial-bank loans. Since 1988, commercial banks in China had been required to hold around 20 percent of their reserve assets with the central bank (the official 13 percent requirement plus "excess deposit requirements" ranging from 6 to 10 percent), compared to international standards of 4 to 7 percent.
Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  

HomeMailHotSubjectMarksPeopleMarksKeepersSettings
Terms Of UseContact UsCopyright/IP PolicyPrivacy PolicyAbout UsFAQAdvertise on SI
© 2025 Knight Sac Media.  Data provided by Twelve Data, Alpha Vantage, and CityFALCON News