Deposit reserve, we must first understand. Commercial banks absorb public deposits and public savings. After absorbing the money, they lent it to the market to make a profit. In order to pursue profits, commercial banks are willing to put more money into the market, because the more money they put in, the more potential returns they will get, and the higher they will be. The following is the impact of the reduction of the deposit reserve ratio. 1. Money and credit will increase. Because the loanable funds of commercial banks will increase, the loan interest will also decrease. Of course, the final result of this adjustment is that the currency circulating in the market has increased and it is easy to borrow money. The cost of obtaining funds for some enterprises has decreased, and social investment has increased accordingly. 2. The interest on personal savings has dropped. If the central bank reduces the deposit reserve ratio, the loanable funds of commercial banks will increase, and they will lower the deposit interest rate, at which time the deposit interest will also decrease. The adjustment of the deposit reserve ratio also has an impact on the stock market. Generally speaking, lowering the deposit reserve ratio indicates a major positive for the stock market, but we should also be alert to the recurrence of the tragedy of chasing high. 4. Stimulate consumers to buy a house. After reducing the deposit reserve ratio, banks will have more follow-up funds, mortgage loans may continue to be loose, and the pressure on buyers will continue to decrease.

1. The deposit reserve ratio refers to the proportion of the main deposits of commercial banks that cannot be used for loans. In order to ensure customers' withdrawal of deposits and settlement of funds, banking institutions cannot use all deposits for loans or financial investments, but must keep some funds in the central bank, which is the deposit reserve. The ratio of deposit reserve to total deposits is the deposit reserve ratio. In order to support the development of the real economy and promote the steady decline of comprehensive financing costs, the People's Bank of China decided to reduce the deposit reserve ratio of financial institutions by 0.5 percentage points on 20021215 (except for financial institutions that have implemented the 5% deposit reserve ratio). After this reduction, the weighted average deposit reserve ratio of financial institutions is 8.4%.

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 real effect of the deposit reserve ratio policy lies in its ability to expand the credit of commercial banks and adjust the currency multiplier. There is a multiplier relationship between the credit expansion ability of commercial banks and the amount of base money put in by the central bank, and the multiplier is inversely proportional to the deposit reserve ratio. Therefore, if the central bank adopts a tightening policy, it can increase the statutory deposit reserve ratio, limit the credit expansion ability of commercial banks from the deposit reserve, reduce the money multiplier, and finally shrink the amount of money and credit, and vice versa.