Tag Archives: China bank liquidity

The decision to lower reserve requirements for some lending does not represent a policy shift by the PBoC, still intent on reining in excessive financial leverage.The People’s Bank of China (PBoC) announced on 30 September that it would lower the required reserve ratio (RRR) for selected banks by 50-150 basis points (bps) from the beginning of next January.Specifically, banks eligible for a 50 bps cut to their RRR will include those that have at least 1.5% of their existing loans or of their...

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