China increased reserve requirements at banks in a bid to control inflation and head off a potential credit bubble.
State-owned banks must set aside an extra 0.5% of deposits as reserves, starting Nov. 29. That means some lenders could be setting aside as much as 19% of deposits, The Associated Press said.
It’s the second time this month that China has ordered banks to hold bank more reserves….
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China Raises Reserve Requirements to Fight Inflation originally appeared on DailyFinance on Fri, 19 Nov 2010 07:41:00.