Banks are parking more of their deposits in reserve after the third increase this year to the reserve requirement ratio went into effect this week.

央行今年第三次增加存款准备金率本周生效。

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The People's Bank of China announced Wednesday that it would cut the reserve requirement ratio for banks by 0.5 percentage point, freeing up more funds to lend.

中国人民银行周三宣布将下调银行存款准备金率0.5个百分点，从而释放出更多资金用于放贷。

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In addition, the People's Bank of China cut its reserve requirement ratio for large banks for the first time since December 2008, following a modest easing for small rural banks last month.

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Expectations of more favorable monetary policies, including two cuts in banks' reserve requirement ratio in the past three months, are creating isolated pockets of optimism, though analysts said Beijing would be quick to put a damper on any signs of a price rebound.

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