If the deposit reserve ratio is raised, it means that banks must keep more funds, while the amount of loans allowed is relatively reduced. Simply put, the amount of loans issued by banks has been compressed. Most individuals or enterprises that borrow money are used for investment, and restraining loans can be simply understood as restraining investment. At present, China's economy as a whole shows a trend of overheating and over-investment, so the central bank announced to raise the deposit reserve ratio, that is, to curb overheating. This policy is called tight monetary policy.

1. Deposit reserve refers to the deposits deposited in the central bank prepared by financial institutions to ensure customers' withdrawal of deposits and settlement of funds. The ratio of the deposit reserve required by the central bank to its total deposits is the deposit reserve ratio. Since 20 1 1, the central bank has raised the deposit reserve ratio four times in a row, once a month, which is rare in history. On 20th11June14th, the central bank announced that it would raise the deposit reserve ratio by 0.5 percentage points. This is also the sixth time that the central bank raised the deposit reserve ratio during the year. 201165438+February, the central bank lowered the deposit reserve ratio for the first time in three years; 2065438+In February 2002, the deposit reserve ratio was lowered again. 2065438+February 5, 2005, the central bank lowered the RMB deposit reserve ratio of financial institutions by 0.5 percentage points again. 20 15 On April 20th, the central bank lowered the RMB deposit reserve ratio 1 percentage point again. The People's Bank of China decided to generally reduce the RMB deposit reserve ratio of financial institutions by 0.5 percentage points from March 16.

2. Deposit reserve, also known as statutory deposit reserve or deposit reserve, refers to the deposits prepared by financial institutions in the central bank to ensure customers' withdrawal of deposits and fund settlement. The ratio of the deposit reserve required by the central bank to its total deposit is the deposit reserve ratio. By adjusting the deposit reserve ratio, the central bank can influence the credit expansion ability of financial institutions, thus indirectly regulating the money supply. RDR, namely RMB deposit reserve ratio, is the full name of RMB deposit reserve ratio. Deposit reserve is a fund prepared to limit the credit expansion of financial institutions, ensure customers to withdraw deposits and meet the needs of fund settlement. The statutory deposit reserve ratio is the ratio of the deposit reserve paid by financial institutions to the central bank in accordance with regulations to the total deposits. This part is a risk reserve and cannot be used to issue loans. The higher the ratio, the greater the intensity of the tightening policy.

Third, the relationship between the deposit reserve ratio and interest rate: Generally speaking, when the deposit reserve ratio rises, interest rates will have upward pressure, which is a signal of tightening monetary policy. The deposit reserve ratio is aimed at banks and other financial institutions, and its impact on the final customers is indirect; The interest rate is aimed at the final customer, such as the interest on your deposit, and the impact is direct. Simply put, the deposit reserve ratio has an impact on the total amount of loans and money supply in society. Raising the deposit reserve ratio will correspondingly reduce the money supply, raise interest rates and lower people's CPI index, with the ultimate goal of reducing the inflation rate.