Reported 7 months ago
According to the analysis of state-owned banks, following the central bank's increase in the reserve requirement ratio by 1 percentage point, banks will have to choose quality loan cases carefully due to reduced loanable funds; private banks see this move as a measure to suppress inflation. This adjustment signifies a tightening of monetary policy tools, leading to a decrease in available loanable funds and consequently prompting banks to be selective in extending credit. Overall, the policy indicates a consensus among policymakers and the central bank governor that domestic inflation pressures are expected to gradually ease, and economic growth momentum in the latter half of the year will slow down.
Source: YAHOO