According to the Oriental Morning Post, the executive meeting of the central bank head office has recently implemented the dynamic adjustment plan of differential reserves, and plans to introduce the dynamic adjustment of differential deposit reserve into the macro Prudential framework to further enrich the monetary policy regulation tools.

The above scheme is still in the final stage of revision.

According to the plan, when determining the payment standard of differential deposit reserve, it will refer to the scale, relevance and substitution of financial institutions in the whole financial system, as well as the differential collection of their main business indicators and regulatory risk indicators. Financial institutions with lower capital adequacy ratio and greater risk of operation will have to pay more than the reserve requirement, and the excess deposit reserve interest will be reduced to zero.

According to statistics, the differential deposit reserve system was approved by the State Council in 2004.

According to reports, at the Forum on national monetary and credit work held recently, Hu Xiaolian has indicated that in 2011, the total amount of new credit and the credit growth of each bank were lower than those of this year.

Banks that have already implemented differential deposit reserve rates will still be able to reduce the growth of credit if they are still difficult to implement. They will consider increasing the implementation of the dynamic adjustment of differential reserves, including reducing the interest on reserves.