China has increased the reserve ratio six times and raised interest rates four times since October.
The reserve ratio is the percentage of reserves a bank is required to hold against deposits.
Dodd-Frank requires that the DIF fund-reserve ratio reach 1.35% of insured deposits by September 30, 2020.
When China lowered the bank reserve ratio, commodities including gold, silver and copper jumped higher.
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The ECB also moved to ease liquidity for European banks by lowering the reserve ratio to 1% from 2%.
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To take effect from 29 November, it will be a record high for the reserve ratio, and the ninth rise this year.
Ssangyong Oil Refining, the biggest shareholder in Ssangyong Motor, boasts shareholders' equity of 1.1 trillion won and a capital-reserve ratio of 385%.
Aiming to cut the levels of yuan in circulation, the People's Bank of China is increasing the banking reserve ratio by half a percentage point to 13.5%.
On Thursday, strategists at Nomura Securities in China said they expect the government to lower reserve ratio requirements as early as this month, freeing up lending at Chinese banks.
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Mr. Chidambaram's comments add support to the view among some investors and analysts that the central bank will also cut banks' cash reserve ratio to help banks tide over the liquidity crunch.
"The reserve ratio rise is a signal that the central bank is still in liquidity tightening mode and is very keen to control loan growth, " said a trader at a European bank in Shanghai.
The Fed, ECB, BoJ, BoE, SNB and the Bank of Canada lowered interest rates 50 basis points on dollar swaps, and China lowered its required reserve ratio by 50 bps, the first cut since 2008.
Today its reserve ratio a key measure for an insurer's safety cushion that is obtained by dividing non-life reserves by non-life premiums dropped to 120% from 160% at the end of 1999, well below the industry average.
In lowering the reserve ratio to 1% from 2%, the ECB is hoping that banks can raise enough capital to meet 9% of their core Tier 1 ratios by June 2012, a level that the central bank set in October.
For example, you didn't mention that the recent interest-rate rise on January 31st followed both an unexpected increase in the cash reserve ratio by the central bank and cuts to import duty on several items by the government in order to check inflation.
The monetary expansion following an open-market operation involves adjustments by banks and the public. (To find out more, see Formulating Monetary Policy.) The bank in which the original check from the Fed is deposited now has a reserve ratio that may be too high.
The recent cuts to the reserve requirement ratio (RRR) shows that authorities are getting nervous.
Earlier in the day China announced it is dropping its reserve requirement ratio for banks by 0.5%.
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The announcement came after China indicated it would loosen monetary policy by lowering the reserve requirement ratio for banks.
Resource shares supported the Sydney market, and the Australian dollar jumped briefly, after China's Xinhua news agency said the People's Bank of China would boost liquidity via its reserve requirement ratio.
In addition, the People's Bank of China cut its reserve requirement ratio for large banks for the first time since December 2008, following a modest easing for small rural banks last month.
Expectations of more favorable monetary policies, including two cuts in banks' reserve requirement ratio in the past three months, are creating isolated pockets of optimism, though analysts said Beijing would be quick to put a damper on any signs of a price rebound.
With the recent cut to the reserve-requirement ratio, China has signaled that they know they have to relax.
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PBOC's reserve-requirement ratio has been raised five times since July 2006.
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This leaves only reductions in the bank reserve-requirement ratio.
It also set off a decadelong decline in reserves, which left banks with a record low reserve-to-loan ratio of 1.21% at the end of 2006--just in time for the housing bust to hit.
Before that the ratio of dollar to euro reserve holdings was 3:1.
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The aggregate tier one common capital ratio - assets held in reserve as a buffer against financial troubles - would fall from an actual 11.1% in the third quarter of 2012 to 7.7% in the fourth quarter of 2014 in the hypothetical stress scenario.
The gold standard in history used a fractional, rather than 100%, reserve, recommended by Smith at a 20% ratio.
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And it is widely predicted that the central bank will soon announce measures to curb credit growth by increasing the ratio of bank deposits that must be kept with it in reserve.
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