Chinese banks will be required to 14.5% of deposits as reserves, up from 13.5%. The new rule will take effect on December 25.

According to Bloomberg, the move will take $51 billion out of the banking system. The news service reports that The larger-than-usual increase “reflects the urgency of inflation concerns of the government,” said Liang Hong, an economist at Goldman Sachs Group Inc. in Hong Kong.

Douglas A. McIntyre