Six Chinese banks have been requested by the central bank to raise the reserve requirement ratio from 17% to 17.5%, reports the South China Morning Post, citing bank officials and analysts. The measure aims to control loan growth amid inflation and property speculation.
The six lenders are Industrial and Commercial Bank of China, China Construction Bank, Agricultural Bank of China, Bank of China, China Merchants Bank and China Minsheng Banking Corp.
An additional 0.5 per cent of deposits set aside as reserves could take 300 billion yuan out of the lending market, says the Post.
According to the Post, a raise in the reserve requirement ratio would be more lenient than an interest rate rise anticipated since early this year.
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