China Tightens Bank Lending: Report - TheStreet

BEIJING (

TheStreet

) - China's central bank has again raised banks' reserve requirements in an attempt to

control the country's booming economy

.

The People's Bank of China said on Friday that it will raise the reserve requirement ratio for banks, according to the

Wall Street Journal

.

The reserve ratio will now increase by half a percentage point from Feb. 25, following a

similar increase earlier this year

.

After the increase is implemented, major banks will have to keep 16.5% of their deposits on reserve, according to the Journal. The move is seen as an attempt to control lending and prevent a housing bubble in China.

-- Reported by James Rogers in New York

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