RRR Cut

Beijing Review - - This Week Economy -

China’s cen­tral bank on Septem­ber 30 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 (PBC) 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 1 per­cent­age point if the ra­tio ex­ceeds 10 per­cent, the PBC said.

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

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