c]'s decision to raise the Required Reserve Ratio
to 14% from its current 10%, effective October 10, 2017, a move that is expected to weigh on Egyptian banks?
We note that 24 October to 23 November 2016 is the application of the decision to reduce the required reserve ratio
applicable foreign exchange liabilities from 12 percent to 10 percent.
In 2012, the CBE allowed lenders to write off an amount equivalent in size to their SME credit facilities from 14% required reserve ratio
(RRR) whilst also reducing RRR from 14% to 12%, freeing up liquidity to be direct to the SME sector.
Deepening liquidity problems mean that more active steps to ease the strain on the domestic banking system are likely, including a cut in the repo rate and a reduction in the required reserve ratio
However, banks have been able to find funding abroad, and we believe that the Qatar Central Bank (QCB) has at its disposal the tools to support liquidity, with the QCB's repo rate and required reserve ratio
both above four per cent.
The banks' lower required reserve ratio
since February 2015 should release more liquidity into the market and increase their ability to lend to home buyers and property developers, according to the Moody's report.
Worries over a Greek debt default had sent markets lower on Friday but today the mood was buoyed by a decision by China's central bank to cut the required reserve ratio
for banks by 1%.
Banks have been collecting gold as the Central Bank raised the required reserve ratio
for lira liabilities that can be held in gold from 10 percent to 20 percent last year.
The bank could impose a higher required reserve ratio
on banks whose leverage ratio is 3 percent or less.
As calls grew louder from analysts and investors for further measures from Beijing to support the economy, China's central bank on Thursday completed its largest weekly injection of funds into the financial system in seven months -- a move traders saw as a substitute for a cut in banks' required reserve ratio
The lending rate offered to Taiwanese enterprises by Taiwanese banks in China is currently set at LIBOR plus 300-350 basis points, and if deducting the required reserve ratio
of 1%, the net interest margin stands at 200-250 basis points.
The 600 basis points of required reserve ratio
(RRR) hikes between January 2010 and June 2011 to a record level of 21.