PBOC raises bank reserve requirement

The People's Bank of China said Friday 5 January it had raised the reserve requirement for commercial banks in a bid to stem a rising tide of liquidity in the banking system.

The adjustment is the fourth such move since June last year and is the latest in a series of measures taken to take liquidity out of the banking system and prevent the inflationary effects of excess funds.

The People's Bank of China said it will raise the reserve ratio on bank deposits by 0.5 percentage point, effective Ja