The Popular Bank of China, will raise the reserve ratio by 50 basic points

The Popular Bank of China (PBOC,Central) announced a rise in the bank reserve ratio by 50 basic points on may 10th. This is the third rise that made this year, with th objective of contain credit.

According the Popular Bank of China, in a communicate showed today, the current level is placed at 16.5 percent for big companies and 14.6 percent for small ones.

The Popular Bank of China, in Hong Kong

However, the Popular Bank of China, said that the currency reserve for credit cooperatives and rural banks will remain steady to help the agricultural industry.

This is the third raise of the percentage of deposits that lenders must release from circulation since the beginning of the year, after the first raise past 18th of January and other the 12th of February.

The Popular Bank of China marked as objective for the 2010 restrict assets lended in 2010 to 7.5Billions of Yuans($1.1 Bn), in front of the 9.59 Bn of Yuans ($1.4Bn) in the past Year

The new adjustment of the ratio of th Popular Bank of China, was produced in the middle of a battle of Chinese Government to prevent a excessive liquidity in the economy, that is leading to the creation of speculative bubbles, specially in the real state market, and an a yearly increase by 2.7% in February.

However,th Popular Bank of China kept interest rates steady at 5.31% as has done last months.

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