liquidity little impact, may promote bank spreads expanded

matters



The people's bank of China from 2011 decision, April 21, the, upward deposit financial organ renminbi deposit reserve rate 0.5 percentage point.



Main ideas



1, raise deposit reserve rate point is still hedge foreign exchange brought combines increase liquidity



The raise deposit reserve rate freeze commercial bank funds around 3700 million yuan, the purpose for foreign exchange and increased recycling combines the epicenter ticket due to release the mobility, this past policy intentions were nothing compared to change. The raise, large financial institutions after the deposit reserve rate reached 20.5% small financial institutions,Tory burch outlet to 18.5 percent. March 532.88 billion gap increases foreign exchange, on the other hand, April epicenter tickets expire 4980 billion yuan for the amount. Although many times have been proposed to consider raise deposit reserve rate possible accumulation effect after that, the central bank deposit reserve rate there is not absolute limit. We expect that the foreign exchange under the condition of increasing gap, the central bank has further raise deposit reserve rate possible.



2, the net to commercial Banks less effect



We study conclusion is, commercial Banks to raise the deposit reserve rate still is to reduce the corresponding countermeasures of assets and bond assets, thus increasing in the central bank's reserves. Tory Burch Boots Sale,Because the legal deposit reserve rate below the trade assets and bonds, which would reduce the return on equity of commercial bank earnings, raise deposit reserve rate 0.5 percentage point to commercial Banks in net impact from 0.3%, net 0.2% - Angle analysis, influencing degree is not big.



Three, liquidity little impact, may promote bank spreads expanded



Since march, a large increase in foreign exchange gap and central bank bills under the common function of maturity, commercial bank liquidity relative abundance, reflected in the interbank market fell on short-term interest rates to lower level. We estimate that the current commercial bank excess cover, the relatively high rates to raise deposit reserve rate freeze funds to interbank market liquidity won't cause too big impact.



On the other hand, in inflation highs case, expected in the market tightening last a long time, displays in the interbank market interest rates on the long side up continuously, in which case the bank will further expand trend spreads. Tory Burch Flats Sale, 4, curb inflation is still policy formulation jumping-off place