With the rapid and healthy development of China's national economy, people's wealth is accumulating. Financial management has become an important means for modern people to plan their wealth. In this social background, personal financial management has become the focus of banking and financial industry. Diversified and personalized financial services have become the first choice of bank consumers and the focus of commercial banks' marketing business. In short, the benefits are directly proportional to the risks. We should weigh our investment ability reasonably and choose the right investment products.
The main businesses of banks are deposits, credit cards and loans. Among them, deposit means that we deposit money in the bank at a certain predetermined interest rate and have agreed on a certain withdrawal period. In other words, banks need to pay interest other than the due principal of American depositors. So the deposit belongs to the bank's debt. In order to ensure the feasibility of bank's debt repayment, all commercial banks in China need to hand in part of the deposit reserve to the central bank.
The deposit reserve ratio is the ratio of deposit reserve paid by commercial banks to total deposits, which is determined by the central bank according to market industries and macro policies. Under normal circumstances, when monetary policy is relaxed, the deposit reserve ratio will be low or lowered; When tightening monetary policy, the deposit reserve ratio will be higher and higher. Because raising the deposit reserve ratio means that the reserves deposited by commercial banks in the central bank will increase and the funds circulating in the market will decrease, which will help to slow down the growth of money and credit accordingly and maintain the sustained, rapid, coordinated and healthy development of the national economy.