- China’s deposit reserve ratio is relatively high
Headline on the Bloomberg, citing an article in China Finance from Sheng Songcheng, head of the statistics department at the PBOC.
More (via MNI):
- China’s deposit reserve ratio is relatively high compared with developed economies because China’s financial sector is still comparatively underdeveloped
- Sheng said the Chinese central bank still needs the deposit reserve requirement to centralize a certain amount of liquidity to prevent liquidity risks for financial institutions
- Said the deposit reserve ratio remains a major tool of China’s monetary policy for the central bank to adjust money supply and interbank liquidity
