Deposit reserve refers to the deposits deposited by financial institutions in the central bank, which is used to ensure the needs of customers to withdraw deposits and settle funds. The statutory deposit reserve ratio refers to the ratio of the statutory reserve required by the central bank of a country for commercial banks and deposit financial institutions to their total deposits. Deposit reserve is divided into statutory deposit reserve and excess deposit reserve. The statutory deposit reserve is the deposit paid by financial institutions to the central bank according to a certain proportion of their deposits, which is usually determined by the central bank and is called the statutory 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%. In order to strengthen the foreign exchange liquidity management of financial institutions, the People's Bank of China decided to raise the foreign exchange deposit reserve ratio of financial institutions by 2 percentage points from 2002115, that is, the foreign exchange deposit reserve ratio was raised from the current 7% to 9%.
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.
Generally speaking, raising the deposit reserve ratio will force interest rates to rise, 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.