PBOC could ease small banks’ RRRs

Author: | Published: 9 Sep 2011

The People’s Bank of China (PBOC) is expected to cut the reserve requirement ratio (RRR) for smaller banks before the end of this year.

China’s central bank last month ordered all commercial banks to include margin deposits in required reserves in a bid to tighten the shadow banking system, as well as to rein in ever-rising inflation and address concerns over local government entities’ risk exposure.

According to the PBOC, renminbi margin deposits - such as letters of credit, bank acceptances and letters of guarantee - totalled Rmb4.4 billion ($689bn) at the end of July, making up 5.7 percent of...



close Register today to read IFLR's global coverage

Get unlimited access to IFLR.com for 7 days*, including the latest regulatory developments in the global financial sector, updated daily.

  • Deal Analysis
  • Expert Opinion
  • Best Practice


*all IFLR's global coverage published in the last 3 months.

Read IFLR's global coverage whenever and wherever you want for 7 days with IFLR mobile app for iPad and iPhone

"The format of the Review has changed over the years; the high quality of its substantive content has not."
Lee C Buchheit, Cleary Gottlieb