PBoC injects $79 billion into virus-hit economy
Targeted RRR cut encourages smaller banks to lend to SMEs
China’s central bank lowered banks’ reserve requirement ratio for the second time this year today (March 13), pumping 550 billion yuan ($79 billion) into the coronavirus-hit economy.
The People’s Bank of China said it would cut the RRR by 50–100 basis points for qualified banks that have met inclusive financing targets, starting from March 16. The central bank will slash the ratio by another 100bp for qualified joint-equity commercial banks, which are smaller and seen as more vulnerable than
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