China aims to cut the proportion of cash that commercial banks must keep with the People’s Bank of China, the banking regulator said on Friday, signalling further monetary loosening although the IMF and World Bank say the economy is doing fine.
The China Banking Regulator Commission (CBRC) did not say when reductions in banks’ reserve requirement ratios would be made, but it is the third time in as many months that Beijing has signalled a cut in RRRs, which would free up more cash for lending needed to shore up growth.
The CBRC did, however, qualify its comments, saying RRR reductions would be available to those banks whose lending to small firms and the farm sector warranted the reward. It did not elaborate.
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Koh Gui Qing, Reuters via CHINA US Focus http://ift.tt/1tOanTC
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