Highlights
More bank reserve ratio hikes expected
By Zhang Jiawei (chinadaily.com.cn)
Updated: 2010-01-15 16:03
 |
Large Medium Small |
|
||||
China is likely to raise the deposit reserve requirement ratio three more times this year, given the market's abundant liquidity, and the current 16 percent reserve requirement ratio for large banks is still 1.5 percentage points lower than the peak of 17.5 percent in June 2008, Yi Lei, an analyst with Shanxi Securities, said.
The People's Bank of China, the nation's central bank, decided on Jan 12 to raise the deposit reserve requirement ratio by 0.5 percentage points as of Jan 18. After the adjustment, the reserve requirement ratio will be 16 percent for large banks, 14 percent for medium banks and 13.5 percent for small banks.
Yi said China's reserve requirement ratio is on the rise, and three more adjustments can be expected this year. Even small banks can bear a reserve requirement ratio of 16 percent, Yi said.
Analysts from research institutions including Qilu Securities, Zheshang Securities and Bohai Securities also said there is a chance for another adjustment of the reserve requirement ratio. Sources from BoCom International expect three or four more adjustments later this year...
The full text is available in the January Issue of China Banking. Please visit E-Shop for more subscription details.
