Bank reserve ratio calculated for each 0.5% increase will be reduced by 500 million yuan profit

 Bank 0.5 points for each different provision for the reserve ratio will affect the profits of nearly 5 billion, which is within the measured results of the Bank of China, a close source told Financial Bank's new reporters.

running too fast the first two weeks the case of a branch of Bank of China has long held an emergency joint meeting of credit, requiring local branches be sure to come back two weeks after the scale of charges.

1 14 January, 2011, for the first time the central bank raised deposit-taking financial institutions of RMB deposit reserve ratio by 0.5 percentage points. Dahon's current reserve ratio up to 19%, small and medium financial institutions deposit reserve rate was 15.5%. From early 2010, the central bank began aggressive on the part of the credit bank reserve ratio difference between the purposes and differences between the end of 2010 the reserve ratio system routine, developed a formula, in which the bank's capital adequacy ratio, liquidity position, leverage, provision, the audit concluded, credit rating, internal control standards, the implementation of credit policy and so will be as a reference factor, counter-cyclical capital, systemically important institutions of the capital and other factors were also included.

Dahon general practice is: if the head office because of differences in credit provision exceeded the reserve ratio is to freeze the amount will be deducted excessive amount of branches.

there are a lot of controversy, but has affected the bank expected.

BOC estimates, on Jan. 14 raised the deposit reserve ratio by 0.5 percentage points, may lead to all listed banks need to deposit in the People's Bank of 237.9 billion yuan. If the assumption that all banks from the interbank funds transfer these funds, then they will drop the total interest income of 5.1 billion (assuming the interbank rate of return of 3.83%). This will enable banks to reduce profit by mid-2011 of 3.8 billion, net profit shall be decreased by 0.6%. times -4 times the deposit reserve ratio, a large bank deposit reserve ratio could rise to 20% -21%, then taking into account the differences in the application of the deposit reserve ratio, the actual big banks deposit reserve ratio may reach 23% -25 %. Once the deposit reserve ratio to rise to the height, on the one hand, the bank will gradually tightening capital side, the bank paid for the competitive cost of funds of funds will continue to rise; the other hand, the bank's lending capacity will be significantly constrained. Especially the lower individual capital strength of banks.

analysts pointed out that the required reserve ratio is the main tool for regulating liquidity, open market operations play a supporting role, while the difference between the reserve ratio is mainly for credit control.