China to strengthen oversight of banks' required reserves
Reuters
Published Dec 20, 2018 06:15AM ET
China to strengthen oversight of banks' required reserves
BEIJING (Reuters) - China's central bank said on Thursday it will strengthen the oversight of the reserves that commercial banks and other lenders are required to deposit to ensure timely and full payment.
The People's Bank of China will impose penalties on delayed payments of required reserves to the central bank, it said in a statement on its website.
The central bank said it would improve its checks on reserves to prevent payment arrears - or the daily average level falling short of the official requirement.
The change would help "ensure the unity of deposit reserve management system and promote healthy operations of financial institutions", the central bank said
The central bank has cut reserve requirement ratios (RRR) - the level of deposits that banks must hold as reserves at the central bank - four times this year, to help support the slowing economy.
The reserve ratio is at 14.5 percent for large commercial lenders.
Get The News You Want
Written By: Reuters
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.