China cuts reserve requirements for small banks
Premier Li Keqiang had urged policy-makers to reduce funding costs for small businesses
China’s central bank has pledged to cut reserve requirement ratios for small and medium-sized banks effective from May 15, releasing 280 billion yuan ($41.56 billion) in long-term funding.
The policy measure will reduce the reserve requirement ratio for roughly 1,000 rural commercial banks to 8%, the lowest level for banks in China, down from 11.5%.
The announcement on May 6 came weeks after Chinese premier Li Keqiang urged the central bank to lower the reserve requirement ratios for small and
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