BMI Research: Asia Monitor: China & North East Asia Monitor: RRR Cuts No Cure

April 2012
Asia Monitor: China & North East Asia Monitor;Apr2012, Vol. 19 Issue 4, p1
Country Report
The article reports on the impact of the decision of the People's Bank of China to cut its reserve requirement ratio (RRR) to the credit growth and monetary policy in 2012 in China. It mentions that the decision to cut the RRR is to add the liquidity to the banking system in the face of the collapse in money aggregates. It notes the factors which act as major structural headwinds to credit growth such as solvency and changing performance to credit.


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