RRR cuts to continue

Source: Xinhua | 2017-02-22

CHINA’S central bank said yesterday that bank reserve requirement ratio cuts would continue this year to reward commercial banks that support agriculture and small businesses.

The central bank has cut the reserve requirement ratio this year for most of the country’s commercial banks as they provided credit support as required for agriculture and small businesses in 2016, said an official with the People’s Bank of China. The cuts will be effective from next Monday. To encourage credit support for agriculture and small businesses, the PBOC introduced directional bank reserve requirement ratio cuts in 2014. The list of commercial banks rewarded with lower deposit requirements are revealed in February every year.