Explain how increasing the required reserve ratio impacts banks money creation process. Chinas central bank will raise

Question:

Explain how increasing the required reserve ratio impacts banks’ money creation process.
China’s central bank will raise its reserve ratio requirement by a percentage point to a record 17.5 percent, stepping up a battle to contain lending growth. Banks’ ratio of excess reserves to deposits was 2 percent. Every half-point increase in the required reserve ratio cuts banks’ profits by 1.5 percent.