China plans monetary policy reform

China's central bank plans to begin this year a monthly review of banks' required reserves as part of wider monetary policy reform, it was revealed on Wednesday.

China's central bank plans to begin this year a monthly review of banks' required reserves as part of wider monetary policy reform, it was revealed on Wednesday.

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Banks will be subject to different required reserve ratios depending on their role in the economy, China Daily reported citing the official China Securities Journal. Banks may also receive lower interest income for reserves beyond the levels set by the central bank, as the central bank seeks to reduce interest costs.