1.   One technique of monetary control, which amounts to a form of credit rationing, is to vary the statutory reserve ratio that banks must adhere to.

2.   If, however, the central bank sets the reserve ratio, then by simply increasing it, it can force banks to reduce their non-reserve assets.

3.   Of course, it is possible for the Bank of England to control the money supply by changing the minimum cash reserves ratio.

4.   The banks may simply allow their cash reserves ratio to rise.

5.   Analysts say the cut in the reserve ratio will help reduce the interest payment burdens of many Korean companies.

6.   A central bank cut in bank reserve ratios, for example, would help raise bank profits by expanding the amount of funds that can be loaned to customers.

7.   A higher reserve ratio provides more protection in the event of a downturn.

8.   In two recent speeches, however, Zeitler denied that the central bank lowered German interest rates through the back door when it cut the reserve ratios.

9.   Measures could include cuts in the bank reserve ratio or more interest rate cuts, they said.

10.   The central bank last lowered the reserve ratio in April when it cut it by two percentage points.