The average required reserve ratio (RRR) for Chinese banks is being reduced to 8.9 per cent following the move by the People’s Bank of China on Friday. Photo: Bloomberg
The average required reserve ratio (RRR) for Chinese banks is being reduced to 8.9 per cent following the move by the People’s Bank of China on Friday. Photo: Bloomberg
China economy
Economy /  China Economy

China freeing up 1 trillion yuan will help support businesses, but impact seen as ‘negligible’ to economy in near-term

  • People’s Bank of China confirmed on Friday that it will cut the reserve requirement ratio (RRR) for financial institutions from next Thursday to support the real economy
  • The reserve ratio is the portion of a commercial bank’s liabilities that it must hold onto against possible losses, rather than lend or invest

Frank TangSu-Lin Tan
Frank Tang in Beijingand Su-Lin Tan in Hong Kong

Updated: 11:32pm, 9 Jul, 2021

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The average required reserve ratio (RRR) for Chinese banks is being reduced to 8.9 per cent following the move by the People’s Bank of China on Friday. Photo: Bloomberg
The average required reserve ratio (RRR) for Chinese banks is being reduced to 8.9 per cent following the move by the People’s Bank of China on Friday. Photo: Bloomberg
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