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It was the largest single reserve ratio move in four years.
A higher reserve ratio provides more protection in the event of a downturn.
After the markets closed, China's central bank said it would increase the reserve ratio for banks to 15.5percentt.
You're keeping a reserve ratio up of something you're never going to use.
"We have a lot of room to adjust the reserve ratio," Mr. Zhou said.
The central bank kept the cash reserve ratio for banks unchanged at 4 percent.
But the government has left the reserve ratio unchanged since then.
China cut its reserve ratio for the banks, a sign that it was now easing policy.
Since January 2007 the minimum reserve ratio has been raised 16 times, from 9% to 17.5%.
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For instance, Ssangyong Cement, the parent company, boasts total shareholders' equity of 1.3 trillion won ($1.5 billion) and a 721% capital-reserve ratio.
The Reserve Bank of India did lower the cash-reserve ratio for banks by a quarter of a percentage point, to 4.25%, to boost lending.
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