China central bank cuts banks' reserve requirement ratio by 50 bps

BEIJING Mon Jun 9, 2014 5:28pm IST

Chinese 100 yuan banknotes are seen in this picture illustration taken in Beijing July 11, 2013. REUTERS/Jason Lee/Files

Chinese 100 yuan banknotes are seen in this picture illustration taken in Beijing July 11, 2013.

Credit: Reuters/Jason Lee/Files

Related Topics

BEIJING (Reuters) - China's central bank said it will cut the level of deposits that banks have to keep with it by 50 basis points for some lenders, a move aimed at freeing up more cash for loans to bolster flagging economic growth.

The People's Bank of China said in a statement on its website that the reduction would be effective from June 16, and will apply to banks whose new loans to the farm sector last year exceeded 50 percent of total new lending for 2014. It is also a requirement that outstanding loans to the farming sector exceeds 30 percent of total outstanding loans.

The central bank said in a short statement that current liquidity in China's banking system was ample, and that the direction of the country's monetary policy had not changed.

Banks' reserve requirements are neither uniform or transparent in China. Smaller banks tend to have lower RRRs than major banks, which had an RRR of 20 percent in 2012.

(Reporting by Shao Xiaoyi and Koh Gui Qing; Editing by Jacqueline Wong)

FILED UNDER:
Comments (0)
This discussion is now closed. We welcome comments on our articles for a limited period after their publication.

  • Most Popular
  • Most Shared

REUTERS SHOWCASE

School Shooting

School Shooting

Two killed, four wounded in Washington state school shooting.  Full Article 

Sundar Pichai Elevated

Sundar Pichai Elevated

Google's Pichai to oversee major products and services.  Full Article 

Need For Reforms

Need For Reforms

Euro zone risks "relapse into recession" without structural reforms - Draghi.  Full Article 

Diwali Sales

Diwali Sales

Gold sales jump about 20 pct for Diwali - trade body  Full Article 

World Bank Rival

World Bank Rival

Three major nations absent as China launches W.Bank rival in Asia  Full Article 

Wal-Mart India

Wal-Mart India

Murali Lanka appointed as Wal-Mart India operations chief  Full Article 

Health Of Lenders

Health Of Lenders

25 European banks set to fail health checks - sources.  Full Article 

Special Report

Special Report

Why Madrid's poor fear Goldman Sachs and Blackstone  Full Article 

India Insight

India Insight

Kalki Koechlin on her role as a disabled girl in “Margarita, With a Straw”  Full Article 

Reuters India Mobile

Reuters India Mobile

Get the latest news on the go. Visit Reuters India on your mobile device.  Full Coverage