China's tighter monetary policy already affecting banks

China's tighter monetary policy already affecting banks. The Central Bank of China's hint last week that it would stop providing easy money had an immediate impact on China's banks. On Friday, the interbank overnight rate shot up to 8.50%, compared to an average rate around 3% over the past year and a half. This makes it harder for Chinese banks to raise capital for short-term needs. There are also reports that Bank of China has placed a moratorium on bank transfer, counter service, and online banking as the country seems to be hitting a short-term money shortage. (VIEW LINK)