China's central bank orders banks to set aside higher reserves, in bid to curb lending

SHANGHAI, China - China's central bank has ordered banks to set aside more reserves to curb a boom in lending.

The People's Bank of China said Monday that banks must increase the amount they must hold in reserve by 0.5 percentage point to 16.5 percent of their deposits, effective May 20.

China has repeatedly increased the reserve ratio over the past two years to curb rapid growth in lending that regulators worry could lead to a financial crisis.

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