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Banks Need Reserve Ratio Cuts, Citic Says

CHINA PRESS
MNI (Sydney)

The PBOC should cut required reserve ratios to help ease rising liability costs faced by commercial banks given that open market operations can't meet liquidity demand, Ming Ming, chief fixed income with Citic Securities, wrote in a research note. The interest rates on interbank deposit certificates have increased and banks are facing pressure to attract individual depositors, said Ming, a former central bank official. Recent government bond issuance has sapped liquidity, according to Ming.

MNI Sydney Bureau | +61-405-322-399 | lachlan.colquhoun.ext@marketnews.com
MNI Sydney Bureau | +61-405-322-399 | lachlan.colquhoun.ext@marketnews.com

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