In a document published on the central government's website late on Sunday, Beijing said it will step up a policy of targeted cuts to banks' required reserve ratios
to encourage financing for small and medium-sized businesses.
Aiming to increase transparency and unify the method of calculating required reserve ratios
, the Bank of Russia has decided that, effective from 1 April 2019, the structure of reservable liabilities of credit institutions is updated to include all their long-term liabilities (except for those under subordinated instruments), their liabilities to international financial organisations and liabilities to State Development Corporation VEB.RF.
I suspect that long-time watchers of China's reform efforts may not be that enthusiastic about its central bank's decision to cut the required reserve ratios
Moscow: Due to changes in the laws of the Russian Federation providing for the possibility to set different mandatory reserve requirements (required reserve ratios
, required reserve averaging ratio) for different types of credit institutions (banks holding a general licence, banks holding a basic licence, non-bank credit institutions), the Bank of Russia Board of Directors decided to set the following mandatory reserve requirements for banks holding a basic licence effective from 1 December 2017.
Higher required reserve ratios
can limit the acceleration in credit supply, and contain macro financial risks.
She asserted that despite the current cautious reactions of both the Central Bank and the Banking Regulation Board, including the ones over required reserve ratios
, the reserve option mechanism, proves to be working fine but the challenges have not been overcome and the cautious policies should be kept.
The bank will basically impose higher required reserve ratios
on banks whose leverage ratio -- a measure of their capital against total assets -- is 3 percent or below.
They did so by using the tools that are now commonplace, such as altering required reserve ratios
and discount rates and engaging in open-market operations.
This follows the May 12th announcement that China would cut its required reserve ratios
by 50 bps to inject liquidity into the financial system.
The outcome dampened expectations of an imminent move by the central bank to cut banks' required reserve ratios
(RRR), the level of cash they must hold in reserve.
The Chinese central bank may announce a 50 basis-point cut in banks' required reserve ratios
at the end of this month, Economic Information 'Daily' reported yesterday.
Turkey's banks have been facing intense pressure as the central bank has raised banks' required reserve ratios
five times since last November to limit credit growth to 25 percent this year, after loans increased by 34 percent last year, Dow Jones noted in a related report.