SUBSCRIBERS

China tweaks reserve ratio tool, fewer cuts seen likely

Published Tue, Jan 5, 2016 · 09:50 PM

Beijing

AS investors continue to grapple with China's economic slowdown, regulators may be taking away an old standby for monetary easing.

The required reserve ratio for commercial banks, a tool long used to add or remove liquidity, will increasingly be used instead as a lever for enforcing financial stability. That's according to a People's Bank of China announcement on Dec 29 describing a new Macro Prudential Assessment system, or MPA.

BT is now on Telegram!

For daily updates on weekdays and specially selected content for the weekend. Subscribe to  t.me/BizTimes

International

SUPPORT SOUTH-EAST ASIA'S LEADING FINANCIAL DAILY

Get the latest coverage and full access to all BT premium content.

SUBSCRIBE NOW

Browse corporate subscription here