central banks have more than 40 banks difference reserve dynamic adjustment
people's bank of china about the 22nd, told xinhua reporters that 2011, the central bank has started using difference reserve dynamic adjustment in monetary credit control tools over more than 40 lower capital adequacy ratioses, credit has been growing too fast, the procyclical risk increases of local financial institutions to implement the differential reserve requirements.
differential dynamic adjustment of reserves in both the differential reserve requirement to introduce macro-prudential requirements and standardization, transparency, is mainly based on the total amount of community financing, bank credit, and socio-economic development goals of deviation and deviation of specific financial institutions on the impact system with financial institutions and taking into account the significance, soundness and implementation of state policies, and so on. it is understood that earlier central bank has made clear to the financial institution to implement dynamic adjustment of the differential reserve related factors and rules.
according to reports, the financial institutions central bank said this new regulatory mechanisms generally recognized and endorsed, that the machinery for financial institutions credit growth combined with banks ' ability to withstand risks, and to provide a proactive adjustment credit and risk prevention capacity of a flexible mechanism, with regular, transparent and market-oriented features. difference reserve dynamic adjustment rules are relatively simple, easy to understand and master the agencies according to the calculation formula and the relevant parameters, based on its capital adequacy level, systemically, robustness, and implementation of credit policies, such as, measure on its own, independent adjustment lending, operable, and scale management and more flexibility, relevance and effectiveness.
reporters from the bank was informed that since january, the national financial institutions, financial institutions, in particular, has begun to adjust dynamically based on difference reserve requirements hold credit schedule. analysts said the central bank to raise interest rates, reserve ratio and implementation difference reserve under the action of dynamic adjustment of the range of monetary policy tools, such as, credit control and achieved good results. january 1 new yuan loans of all financial institutions. 4 trillion yuan, increased by more than 350 billion yuan less than a year.
the central bank said the next stage, the central bank will be based on the macroeconomic situation and the total amount of community financing and the growth of money and credit, continues to use interest rates, reserve requirements, open market operations and other conventional monetary policy instruments, and difference reserve dynamic adjustment tool, master valve good liquidity, and implement the prudent monetary policy.