China Moves to Curb Excessive Credit

The Chinese government Friday raised reserve requirement for commercial banks in a move intended to keep the banks? lending in check, according to a story by Reuters. It was the second such move in less than five weeks.

China is hoping that the increased reserve requirements will discourage the extension of credit by the banks and, in turn, cool the red-hot economy. China?s economic growth rate in the second quarter this year was 11.3%.

For this complete story, please see the Reuters story.