For banks holding a general licence and non-bank credit institutions, the required reserve ratios
on all types of liabilities and the required reserve averaging ratios are set at their current levels.
Given the seasonal dynamics of cash in circulation, budget expense financing and the upward revision of required reserve ratios
, structural liquidity deficit in the banking sector is expected to persist until the end of 2016.
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.
Moreover, the bank has reduced the required reserve ratios
for foreign-exchange deposits by 0.
European equities pared earlier gains after China's central bank raised lenders' required reserve ratios
in a move which also briefly reversed a rally in Brent crude prices.