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Exclusive: China central bank ready to cut bank reserves if growth falters - sources

Exclusive: China central bank ready to cut bank reserves if growth falters - sources

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minimax Offline
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#1
12-03-2014, 08:59 AM
http://www.reuters.com/article/2014/03/1...WF20140311
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freedom Offline
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#2
12-03-2014, 02:25 PM
Reducing RRR helps liquidity risk, but not for credit risk which is the biggest risk now facing the banking system in China.
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specuvestor Offline
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#3
13-03-2014, 11:26 AM
In general this is correct but the 2nd order of liquidity easing also helps credit risk because banks are generally more eager to lend ie lower lending standards. That is why generally credit spreads tighten during easy money period and widened during tighter monetary periods.
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