TY - JOUR AU - Guo Xiaohui AU - Tajul Ariffin Masron PY - 2017/11/21 Y2 - 2024/03/29 TI - THE EFFECTS OF DIFFERENTIATED RESERVE REQUIREMENT RATIO POLICY ON THE EARTHQUAKESTRICKEN AREA IN CHINA JF - International Journal of Business and Society JA - IJBS VL - 17 IS - 3 SE - Articles DO - 10.33736/ijbs.541.2016 UR - https://publisher.unimas.my/ojs/index.php/IJBS/article/view/541 AB - In June, 2008, the People’s Bank of China (PBC) decided to implement Differentiated ReserveRequirement Ratio (DRRR) policy in the earthquake-stricken counties in Sichuan province in orderto help the reconstruction of these areas which suffered the big earthquake. The purpose of thisstudy is to examine the role of this DRRR policy on the disaster area. This paper compares theeffects of DRRR policy on the earthquake-stricken counties with that of the normal ReserveRequirement Ratio (RRR) on the other counties using panel data analysis during 2008-2011. Theresults confirm that this preferential DRRR policy can really quicken the recovery process in theearthquake-stricken counties. This DRRR policy reflects that the PBC starts to use differentiatedmonetary policy to guide credit funds flow to the area which government policy focus on. Monetarypolicy begins to play a role in adjusting and optimizing economic structure. Due to large regionaldisparity, the PBC can consider expand the application of this DRRR policy to more less developedregions to make a more coordinated regional economic development in China.Keywords: Differentiated Reserve Requirement Ratio; Earthquake-stricken Counties; Panel DataAnalysis. ER -