China cuts reserve ratios for some banks to spur lending amid epidemic

1 min


74
11 shares, 74 points

China cuts reserve ratios for some banks to spur lending amid epidemic 1

BEIJING: China’s central bank said on Friday it was cutting the amount of cash that some qualifying banks must hold as reserves for the second time this year, releasing 550 billion yuan ($ 79 billion) in liquidity to support the economy, which has been jolted by a coronavirus outbreak.

The People’s Bank of China (PBOC) said on its website that it would cut the reserve requirement ratio (RRR) by 50-100 basis points (bps) for banks that have met inclusive financing targets.

The RRR for qualified joint-stock banks would be reduced by an additional 100 bps, it added.

The targeted cut, the ninth since early 2018, will be effective from March 16.

The central bank has been easing monetary policy since the virus outbreak, cutting the benchmark lending rate and telling banks to offer cheap loans and payment relief to firms that have been hardest hit by the coronavirus outbreak.

Analysts polled by Reuters expected China’s economic growth to tumble to 3.5% in the first quarter from the previous quarter’s 6.0%. – Reuters


Like it? Share with your friends!

74
11 shares, 74 points

What's Your Reaction?

hate hate
6
hate
confused confused
18
confused
fail fail
12
fail
fun fun
10
fun
geeky geeky
8
geeky
love love
2
love
lol lol
4
lol
omg omg
18
omg
win win
12
win

Read exclusive latest news on entertainment, music, gaming and more topics with unprecedented coverage from around the UK and US.

0 Comments

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.