China orders banks to increase reserve ratios

11/11/2010 | People's Daily (China)

The People's Bank of China has ordered banks to bolster their reserve ratios in order to soak up extra liquidity. China's stimulus efforts to battle the financial crisis flooded the financial system with money, then monetary easing in the U.S. led to a wave of speculative cash inflows. The central bank said it has raised the reserve ratio for deposit-taking financial institutions to 17% or 18%, depending on their size.

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People's Daily (China)

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