The RMB liquidity ratio in 2020 is 58.41%.

The liquidity ratio was a control on bank lending prior to the introduction of the Monetary Management Measures in 1970 (for a summary see Bank of England documents), in part by requiring banks to keep liquid assets (i.e. cash, available at short notice) This is achieved by setting a minimum ratio between loans and bills issued to the discount market and total deposit liabilities. This theory of using solvency ratio instead of cash ratio as the control ratio of banking business has been generally accepted by the British banking industry in the 1950s. This theory is based on the following facts: the surge in the issuance of Treasury bills, the policy implemented by the monetary authorities to stabilize the Treasury bill rate, and the institutional arrangements that ensure that the discount market absorbs all securities that are issued. Therefore, the minimum solvency ratio that banks were required to comply with was 30%, which was later reduced to 28%.

The first is that the liquidity demand forecast is equal to the forecast value of the change in loans plus the change in statutory reserves minus the forecast value of the change in deposits. The second is the formula for liability liquidity reserves as follows: liability liquidity reserves are equal to 95% (hot capital liabilities minus statutory reserves) plus 30% times (variable liabilities minus statutory reserves) plus 15% times (stability fixed funds) minus statutory provisions). The third is the formula for total liquidity demand of commercial banks as follows: Total liquidity demand is equal to liability liquidity demand plus loan liquidity demand, which is equal to 95% multiplied by (hot money liabilities - statutory reserves) plus 30% multiplied by (variable liabilities minus statutory reserves) reserves) plus 15% multiplied by (stable funds minus statutory reserves) plus 100% multiplied by expected new loans. The fourth liquidity ratio indicator is an important indicator for banks to measure the degree of liquidity risk under the policy of focusing on asset management. The calculation formula is: The first is the RMB indicator and the combined local and foreign currency indicator: the ending balance of current assets/the ending balance of current liabilities is greater than or equal to 25%. The second is the foreign currency indicator: the ending balance of various foreign exchange liquid assets/the ending balance of various foreign exchange liquid liabilities is greater than or equal to 60%. Liquid assets refer to assets that can be converted into cash within one month (including one month).