Business News
China lowers reserve ratio for banks
Feb 18, 2012, 15:04 GMT
Beijing - China's central bank is to lower the reserve requirement ratio (RRR) for commercial banks by 0.5 percentage points, the official news agency Xinhua reported Saturday, a move designed to boost liquidity and stimulate the economy.
The decrease from 21 to 20.5 per cent will come into force on February 24, the central bank said in a statement. It is the second such lowering in three months.
The move will allow banks more freedom to give out commercial loans to counter a slowdown in the Chinese economy.
Other recent moves include relaxing some restrictions on lending by regional financial institutions.
The RRR was lowered from 21.5 per cent to 21 per cent in November. Author: Henrik Bork
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