Why are the reserve requirement ratios raised so frequently?

If the reserve requirement ratio is 20 percent, then depositors will have to pay 100 yuan to the bank, and the bank will have to pay 20 yuan to the central bank, and the bank will have less money to provide loans, and the corresponding goods will be less manufactured or circulated. There are generally monetary means to control inflation, monetary means are exchange rates and deposit reserves, and fiscal means are taxes, subsidies, etc. In China, reserve requirements are the norm to control inflation**, but abroad they are heavy**.

In the long run, it is still necessary to find the root causes, the economic structure, the institutional constitution, and control external factors, such as imported inflation and natural and man-made disasters.

Because China's "inflation" is not suppressed, people's living burdens will become more serious, and the reserve as a monetary policy can effectively prevent China's economy from developing rapidly to violently.

Showing ** concern about "inflation".

An increase in the reserve requirement ratio will put upward pressure on interest rates, which is a signal of a tighter monetary policy. The RRR is specific to financial institutions such as banks, and the impact on end customers is indirect; Interest rates are specific to the end customer, such as the interest on your deposit, and the impact is immediate.

The reserve requirement ratio has an impact on the total amount of loans and the amount of money in the society. Raising the reserve requirement ratio correspondingly reduces the amount of money, interest rates will rise, so that people's CPI index will fall, and the ultimate goal is to reduce the inflation rate.

The increase in the reserve requirement ratio may force banks to raise their down payments on mortgages. In the case of the further reduction of bank credit, the increase in the down payment ratio of the loan for the first home may become a reality for the sake of operating profits or business risks, and the pressure on first-time home buyers to buy a house may increase as a result.

Impact of the RRR cut: 1Increase money and credit, because the loanable funds increase, the corresponding interest will be reduced, then it will be easier for everyone to borrow money, the market liquidity will increase, and the cost of some enterprises will fall.

3. The real estate industry is improving, banks are restructuring, housing loans may decline, and home buyers will target the real estate industry.

The impact of raising the reserve ratio: 1. Unfavorable, at this time, the amount of social money will decrease, and everyone will reduce the purchase of non-financial assets and financial assets, which will affect the stock price, and there will be a trend that will affect the profits of some enterprises.

2.Due to the impact of the banking industry, a large amount of funds from the banks below have been frozen and cannot flow into the mortgage market, and the reduction of market liquidity will affect the performance of banks. At the same time, the financial pressure on listed companies will increase, and in order to prevent financial risks, banks need to find new profit breakthroughs to ensure business stability.

3. The impact of the real estate industry, the increase in the deposit reserve ratio, the first is the real estate, because many real estate companies need bank loans to continue to support, if the increase is raised, the loan space will be compressed, and the loan fund support is not much, which will not only affect the real estate enterprises, but also affect people's willingness to buy houses and affect the development of real estate.

Further information: In order to guarantee the clearing of customer funds and the need to withdraw deposits, financial institutions have money from the central bank. The reserve requirement ratio (RRR), which is higher than total assets, is an important monetary tool and one of the traditional tools of the central bank.

It can be a true reflection of the ability of credit expansion, and the money multiplier can be adjusted, because there is a multiplier relationship between commercial banks and the central bank, and the result is inversely proportional to the reserve requirement ratio. Therefore, in the case of austerity, the correlation ratio can be raised, the money multiplier can be lowered, and the ability to expand credit can be limited, and vice versa. On the 6th of the month, the central bank decided to cut it by one percentage point.

The significance of raising the reserve requirement ratio: Raising the reserve requirement ratio is a tight monetary policy, which will reduce the funds in the market and reduce the incremental funds in the market, which is not conducive to the increase in the reserve ratio. In general, when inflation occurs, the reserve requirement will be increased to adjust it.

The significance of the RRR cut: The RRR cut is an accommodative monetary policy, which will make more money in the market and more money in the market, which will lead to a large amount of capital flowing to **, which is good for **. Under normal circumstances, when there is deflation, the reserve requirement will be lowered for adjustment.

The increase in the reserve requirement ratio means that commercial banks are less able to lend money and create credit. Because the reserve ratio increases, the currency multiplier.

It will become smaller, thus reducing the ability of the entire commercial banking system to create credit and expand the scale of credit.

As a result of the increase in the reserve requirement ratio, the monetary system of the society is tight, the amount of money is reduced, and the loans obtained by the people from commercial banks are reduced, and the interest rate is reduced.

Increase, investment and social spending have been reduced accordingly.

Extended Information:1Deposit reserve refers to the deposit reserve prepared by financial institutions in ** bank to ensure that customers need to withdraw deposits and clear funds.

**The reserve requirement ratio is the ratio of the bank's required reserve requirement to its total deposits.

2.Reserve is the fund that is required to limit the credit expansion of financial institutions and ensure that customers withdraw deposits and settle funds. Statutory reserve ratio.

It is the ratio of the deposit reserves paid by financial institutions to ** banks in accordance with the regulations to the total amount of their deposits.

3.In order to support the development of the real economy and promote the steady decline of comprehensive financing costs, the People's Bank of China.

It was decided to reduce the reserve requirement ratio of financial institutions on December 15, 2021.

percentage points (excluding financial institutions that have implemented a 5% reserve requirement ratio). After this downward adjustment, the weighted average of financial institutions.

The reserve requirement ratio is .

Deposit reserves, also known as statutory deposit reserves or deposit reserves, refer to the deposits in ** banks prepared by financial institutions to ensure that customers withdraw deposits and settle funds. **The reserve requirement ratio (RRR) is the ratio of the bank's reserve requirement to its total deposits. By adjusting the reserve requirement ratio, banks can affect the credit expansion ability of financial institutions, thereby indirectly regulating the amount of money.

4.When the bank raises the statutory reserve ratio, the ability of the commercial bank to provide loans and create credit decreases. Because the reserve ratio increases, the money multiplier becomes smaller, thus reducing the ability of the entire commercial banking system to create credit and expand the scale of credit, and the result is that the monetary system of the society is tight, the amount of money is reduced, the interest rate is increased, and investment and social expenditure are reduced accordingly.

And vice versa. For example, if the reserve requirement ratio is 7%, it means that for every 1 million yuan of deposits absorbed by financial institutions, they have to pay to the central bank.

The deposit reserve of 70,000 yuan is deposited, and the funds used to issue loans are 930,000 yuan, and if the deposit reserve ratio is raised to 10,000 yuan, the loanable funds of financial institutions will be reduced to 10,000 yuan.

Summary. The RRR cut means that banks can keep less reserves. The reserve requirement ratio is the proportion that the bank must retain, and this ratio is set by the ** bank.

When a bank lowers its reserve requirement ratio, it means that the bank can retain less reserve requirements. This may result in banks having more money to lend to, which can improve their ability to provide credit. A cut in the reserve requirement ratio may also lead to an increase in profits for banks, as they can earn more through interest on loans.

At the same time, a reduction in the reserve requirement ratio may also lead to an increase in the amount of money, as banks can use the funds they receive for money production.

The RRR cut means that banks can keep less reserves. The reserve requirement ratio is the proportion that the bank must retain, and this ratio is set by the ** bank. When a bank lowers its reserve requirement ratio, it means that the bank can retain less reserve requirements.

This may result in banks having more money to lend to, which can improve their ability to provide credit. A cut in the reserve requirement ratio may also lead to an increase in profits for banks, as they can earn more through interest on loans. At the same time, a reduction in the reserve requirement ratio may also lead to an increase in the amount of money, as banks can use the funds they receive for money production.

However, it is also important to note that a reduction in the reserve requirement ratio may lead to an inflation of the currency, as an increase in the amount of money may reduce the value of the currency. As a result, banks usually exercise caution when adjusting the RRR taking into account the overall effect of monetary policy.

The adjustment of the reserve requirement ratio can affect the credit ability of financial institutions and regulate the amount of money. When the central bank lowers the reserve requirement ratio, it means that the ability of commercial banks to provide loans is enhanced.

For example, banks were originally required to hand over the deposits they absorbed to the central bank, but after the reserve requirement ratio was lowered by one percentage point, they only needed to hand over the total deposits, and the reduced amount became money that the bank could spend, such as for lending.

When banks have more money on hand, it will be less difficult for businesses to borrow. The central bank's RRR cut may be a targeted RRR cut, that is, the funds in the RRR cut are mainly used to support small and micro enterprise loans, and the interest rate cannot be too high, so as to improve the financing cost of small and micro enterprises.

After the enterprise obtains funds, the enthusiasm for development is improved, and the market confidence increases, so the **** may also become better.

In addition, although the central bank has strictly restricted the flow of RRR cut funds into the real estate market, it does not rule out banks to reduce mortgage interest rates when funds are relatively loose.

Not much impact. The People's Bank of China announced on the evening of November 30 that it would cut the RMB reserve requirement ratio of depository financial institutions by one percentage point from December 5, 2011. This is the first time in three years that the central bank has cut the reserve requirement ratio.

I think that China's CPI has just fallen, and there is a feeling of headache and foot pain

1 Associated with the economic downturn: GDP growth fell from the first quarter to the second and third quarters. Under the multiple pressures at home and abroad, the purpose of boosting the economy, solving the problem of employment, stabilizing the income of workers, and stabilizing the society is achieved through the appropriate relaxation of monetary policy.

However, reducing the reserve requirement ratio may lead to a certain increase in the scale of credit, one is to solve the problem of the capital chain of enterprises, in the private small and medium-sized enterprises as the main GDP creator today, the effect may not be obvious; Second, in the environment of high reserve ratio, financial institutions have formed a certain practice of bypassing monetary policy through the innovation of financial instruments, and the actual effect of monetary policy has been reduced.

2 The issuance of local government bonds has squeezed out the release of monetary liquidity, expanding investment but reducing consumption. The combination of expansionary fiscal policy and expansionary monetary policy has kept the market interest rate level stable, and the lending rate will not be greatly loosened in the case of a high CPI, otherwise this year's regulation (especially the regulation of housing prices) will be in vain.

3 Under the continuous increase in the reserve requirement ratio, the economy and society have gradually adapted, this downward adjustment, a little tentative, makeup bowed his head and asked his husband, the depth of the thrush into the time?

It shows that the central bank has adopted a relatively loose monetary policy, and the reserve requirement ratio on December 25, 2011 will be lowered, which may lead to **. At this time, Premier Wen is not saying that he wants entrepreneurs to invest money in the real economy. Reserve funds cannot be used to make loans.

Legal Analysis: Reasons for the RRR Cut:

1. Maintain foreign exchange liquidity.

Second, the need to improve the ability of banks to provide credit.

Third, the need to reduce the financing cost of enterprises.

Fourth, the need for the eventual realization of interest rate liberalization.

Fifth, the need to implement a proactive fiscal policy and investment policy.

Sixth, there is a persistent risk of deflation, and the reserve requirement ratio needs to be lowered.

Legal basis: Law of the People's Republic of China on Commercial Banks Article 31 Commercial banks shall determine deposit interest rates in accordance with the upper and lower limits of deposit interest rates stipulated by the People's Bank of China and make public announcements.