You are here

PBOC said to raise RRR for banks that boosted lending too fast

China's central bank will boost the amount of reserves that must be locked away by some banks that recently increased lending too quickly, people familiar with the matter said.

Regional banks are among those lenders affected by the increase, according to the people, who asked not to be identified because the move wasn't made public. The people didn't give additional details about which banks were affected.

The move by the People's Bank of China comes after a report this week showed the country's banks extended a record 2.51 trillion yuan ($385 billion) of new loans in January. It also follows the monetary authority's recent announcement that it would adopt a so-called macro prudential assessment system that uses commercial banks' required-reserve ratios to help enforce financial stability.

The PBOC didn't immediately respond to a faxed request for comment.


BT is now on Telegram!

For daily updates on weekdays and specially selected content for the weekend. Subscribe to