PBoC cuts reserve requirement in bid to support lending to smaller firms
Move may be "precautionary" response to slowing growth – analyst
The People’s Bank of China will lower the reserve requirement ratio (RRR) for selected banks by one percentage point, in an attempt to increase lending to smaller firms.
The PBoC has also told the banks involved that they must use approximately one-third of the funds made available by the move to support lending to smaller businesses.The cut in the RRR will be effective from April 25, according to the PBoC’s announcement on April 17.
The lower reserve requirement will free up approximately 1.3
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