PBoC aims to galvanise lending by cutting reserve ratio for small banks

China flag

The People's Bank of China (PBoC) will allow some smaller banks to reduce their reserve holdings in an attempt to kick-start lending to small businesses, it announced yesterday.

The central bank was quick to stress there is "ample liquidity" in the economy and the "basic orientation of monetary policy has not changed" – insisting the move was motivated by a desire to help small firms access credit.

Specifically, the PBoC will cut the reserve requirement ratio (RRR) by 50 basis points at every ba

To continue reading...

You need to sign in to use this feature. If you don’t have a Central Banking account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an indvidual account here: