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MNI BRIEF: China Cuts Reserve Ratio To Drive Credit Expansion

MNI (Singapore)
BEIJING (MNI)
True

The People's Bank of China (PBOC) cut the cash reserve ratio requirement for banks on Friday to release CNY530 billion long-term funds into the banking system to boost the economy, support SMEs and lower funding costs.

The central bank cut the RRR at a full pace by 25 basis points for most banks whose RRR is higher than 5%, and urban commercial banks that do not operate across provinces as well as rural commercial banks with a reserve ratio higher than 5%, will enjoy an additional 25 bps cut, aiming to increase support for smaller companies and the agriculture sector.

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The People's Bank of China (PBOC) cut the cash reserve ratio requirement for banks on Friday to release CNY530 billion long-term funds into the banking system to boost the economy, support SMEs and lower funding costs.

The central bank cut the RRR at a full pace by 25 basis points for most banks whose RRR is higher than 5%, and urban commercial banks that do not operate across provinces as well as rural commercial banks with a reserve ratio higher than 5%, will enjoy an additional 25 bps cut, aiming to increase support for smaller companies and the agriculture sector.

Keep reading...Show less