The markets certainly see the reserve requirement cut as a positive for the sector.
WSJ: Heard on the Street: China's Developers Breathe Easier, For Now
Earlier in the day China announced it is dropping its reserve requirement ratio for banks by 0.5%.
FORBES: Comex Gold Gets Boost From Coordinated Central Bank Move to Boost Liquidity
The announcement came after China indicated it would loosen monetary policy by lowering the reserve requirement ratio for banks.
Weak bank lending has resulted in soft deposit growth, which in turn reduced reserve requirement needs and helped market liquidity conditions.
The solution to subsidizing the 2% reserve requirement for the MMI fund is to reduce FHA MIP premiums across the board.
FORBES: How The Payroll Tax Cut Is Costing Low Income Borrowers
The Central Bank of China lowered reserve requirement ratios, which gives banks more money to loan rather than keeping cash on reserve.
FORBES: Barclays Reiterates 'No Hard Landing' Call For China
The central bank has raised interest rates three times and increased the reserve requirement for lenders six times in 2011 to rein in inflation.
Worried that all that pent-up credit would fuel reckless lending or inflation, the Fed simply doubled the reserve requirement, transforming excess reserves into mandatory ones.
FORBES: Excess Reserves Are The $1 Trillion Reminder Of Crisis
The bank cut commercial banks' statutory reserve requirement from 13.5% to 4% and reduced the bank's three-month intervention rate by 400 basis points to 7%.
In March, the Central Bank cut reserve requirement ratios at banks.
In order to stoke domestic demand for the bonds, the government announced a loosening of monetary policy in April, cutting the bank reserve requirement and interest rates.
At the same time, the PBoC has eased reserve requirement rations (RRR) and could probably do so twice more this year, and pushed commercial banks to lend.
FORBES: China's More Than $1 Trillion Stimulus Will Disappoint, Barclays Says
The EU debt situation shared the spotlight with China Monday as Chinese monetary authorities loosened monetary policy over the weekend by reducing reserve requirement ratios on domestic bank reserves.
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.
The EU debt situation is also sharing the spotlight with China Monday as its monetary authorities loosened monetary policy over the weekend by reducing reserve requirement ratios on domestic bank reserves.
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.
In response to a struggling housing market and a conservative lending environment, the FHA has added Cadillac pricing to their mortgage products to subsidize a congressionally mandated reserve requirement, and to pay for a tax cut!
FORBES: How The Payroll Tax Cut Is Costing Low Income Borrowers
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.
PBOC's reserve-requirement ratio has been raised five times since July 2006.
ECONOMIST: Economics focus: A stitch in time saves nine | The
This leaves only reductions in the bank reserve-requirement ratio.
The ranking requirement does not apply to uncertain tax positions with no reserve that the corporation plans to litigate.
But Dino Kos, a former head of markets at the Federal Reserve Bank of New York (and now a strategist for Portales Partners, a broker), says the new requirement almost guarantees that an auction will not fail.
应用推荐