China Further Tightens Bank Lending

Beijing has further restricted bank lending by ordering commercial lenders to include margin deposits in the reserves they must set aside.

 

The margin deposit is the collateral used for banks' off-balance sheet and securities transactions, explains an AFP story published by Channel News Asia.

 

Ba Shusong, a researcher with the Development Research Centre of the State Council, or cabinet, told Xinhua the latest move was equivalent to increasing the traditional reserve requirement ratio by several basis points.

 

 

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