In Tuesday's Papers: Central Bank Cuts Reserve Requirement to Support Small and Agri-Businesses; Ruling on Striking Workers in Xiamen Sets Legal Landmark

Central Bank Cuts Reserve Requirement to Support Small and Agri-Businesses

The central bank said on June 10 it will cut the reserve-requirement ratio by half a percentage point, effective June 16, for some commercial banks. The central bank's move will affect about two-thirds of country's city commercial banks, 80 percent of non-county level rural commercial banks and 90 percent of non-county level rural cooperative banks. Lenders eligible for the cut must have their loans to small and micro-businesses and agri-businesses reach a certain proportion of their total loans. The bank also said in its announcement that the current condition of liquidity in the banking system was ample.