China announces targeted RRR cut for inclusive financing

Source: Xinhua| 2017-09-30 18:24:02|Editor: Yang Yi
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BEIJING, Sept. 30 (Xinhua) -- China's central bank Saturday announced a targeted reserve requirement ratio (RRR) cut to encourage inclusive financing at commercial banks, such as credit support for small and micro-sized enterprises, startups and agricultural production.

The People's Bank of China said commercial banks, whose annual outstanding or new loans in inclusive financing account for more than 1.5 percent of the total, will enjoy a 0.5 percentage point RRR cut from the central bank's benchmark level from next year.

The RRR will be cut further by a 1 percentage point if the ratio exceeds 10 percent, the bank said.

Inclusive financing will also cover credit support for small business owners, impoverished groups and students.

The targeted cut, which goes into effect in 2018, is a structural adjustment that does not change the country's overall monetary policy stance, the central bank explained, stressing that it would continue to implement "prudent and neutral" policy to guide reasonable credit and financing growth.