Caixin
Dec 06, 2021 08:25 PM
FINANCE

PBOC to Free Up $188 Billion for Lending to Businesses With New Reserve Requirement Cut

The PBOC says it will lower financial institutions’ reserve requirement ratio by 50 basis points on Dec. 15. Photo: IC Photo
The PBOC says it will lower financial institutions’ reserve requirement ratio by 50 basis points on Dec. 15. Photo: IC Photo

China’s central bank will cut the amount of cash lenders need to keep in reserve, injecting about 1.2 trillion yuan ($188 billion) into the financial system to support the real economy and stabilize companies’ financing costs.

The People’s Bank of China (PBOC) said Monday it will lower financial institutions’ reserve requirement ratio (RRR) by 50 basis points on Dec. 15. The weighted average RRR of financial institutions will fall to 8.4%, according to the PBOC (link in Chinese).

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