CHINA China's central bank adjusts targeted RRR policies to support small firms

CHINA

China's central bank adjusts targeted RRR policies to support small firms

Xinhua

05:50, January 03, 2019

U5547P31DT20150506171423.jpg

(Photo: Sina)

China's central bank decided Wednesday to ease evaluation rules for qualifying financial institutions to enjoy lower reserve requirement ratios (RRR) in a move to encourage inclusive financing.

Financial institutions can deposit less in the central bank as reserve money if they lend a certain share of their loans to small and micro firms each borrowing less than ten million yuan (1.46 million US dollars) from them, the People's Bank of China said in a statement.

The evaluation threshold for inclusive financing is lifted from five million yuan, and the new policy takes effect immediately.

The move will help the preferentially targeted RRR cut cover more financial institutions, encouraging them to serve more small and micro firms which are usually in high demand of credit.

The State Council said late last December that China will improve its policies for targeted reserve requirement ratio cuts to encourage inclusive financing.


Related Stories

Terms of Service & Privacy Policy

We have updated our privacy policy to comply with the latest laws and regulations. The updated policy explains the mechanism of how we collect and treat your personal data. You can learn more about the rights you have by reading our terms of service. Please read them carefully. By clicking AGREE, you indicate that you have read and agreed to our privacy policies

Agree and continue