BEIJING--China's central bank said it would reduce the portion of deposits commercial banks are required to set aside as reserves, releasing billions of dollars to the financial system to help boost economic growth.
The People's Bank of China said Wednesday that it would lower its reserve requirement ratio for all banks by 0.5 percentage point, effective Jan. 6, injecting more than 800 billion yuan ($114.9 billion) into the financial system.
The move, which was widely expected, came after Chinese Premier Li Keqiang last month pledged to encourage more bank loans to the nation's cash-strapped small companies.
The official reserve requirement ratio for most large banks will fall to 12.5% from 13% after the cut takes effect, while the ratio for smaller lenders will drop to 10.5% from 11%.
Beijing has in recent months stepped up efforts to boost a weakening economy by pouring more funds into infrastructure, among other measures.
--Liyan Qi, Grace Zhu
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January 02, 2020 at 04:50PM
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China to cut bank reserve requirements - MarketWatch
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