China raises reserve ratio full percentage point

The People's Bank of China upped its reserve requirement ratio by 100 basis points for the first time this year in a fresh bid to cool its overheating economy.

The central bank will require the country's financial institutions to hold 17.5% of their total deposits in reserves under the new measure announced Saturday. It will implement the measure incrementally, requiring banks to hold 17% from 15 June and 17.5% from 25 June.

The move is expected to drain Rmb422 billion ($60.9 billion). The

Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.

To access these options, along with all other subscription benefits, please contact info@centralbanking.com or view our subscription options here: http://subscriptions.centralbanking.com/subscribe

You are currently unable to copy this content. Please contact info@centralbanking.com to find out more.

Sorry, our subscription options are not loading right now

Please try again later. Get in touch with our customer services team if this issue persists.

New to Central Banking? View our subscription options

Register for Central Banking

All fields are mandatory unless otherwise highlighted

This address will be used to create your account

You need to sign in to use this feature. If you don’t have a Central Banking account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an individual account

.