China cuts reserve requirement ratio for banks

Change to ratio will release funds for banks to help hard-hit industries, says the PBoC

China flag

The People’s Bank of China cut the amount of cash that banks must hold in reserve for the second time this year, it announced today (November 25).

The PBoC reduced the reserve requirement ratio for most banks by 25 basis points to around 7.8%. It said the measure would not apply to banks which are already implementing a 5% reserve ratio.

The adjustment will inject 500 billion yuan ($70 billion) of long-term liquidity into the economy and takes effect on December 5. The central bank cut the

Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.

To access these options, along with all other subscription benefits, please contact info@centralbanking.com or view our subscription options here: http://subscriptions.centralbanking.com/subscribe

You are currently unable to copy this content. Please contact info@centralbanking.com to find out more.

Sorry, our subscription options are not loading right now

Please try again later. Get in touch with our customer services team if this issue persists.

New to Central Banking? View our subscription options

Register for Central Banking

All fields are mandatory unless otherwise highlighted

This address will be used to create your account

Most read articles loading...

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 individual account

.