China to reduce rural banks' reserve requirements
Published on Jun 9, 2014 9:52 PM
BEIJING (AFP) - China's central bank announced details Monday of a plan that reduces the amount of money rural banks must keep in reserve, a move aimed at stimulating the economy amid slowing growth.
In a statement posted on its website, the People's Bank of China (PBOC) said it would cut the reserve requirement ratio (RRR) by 0.5 percentage points for certain agricultural banks, as well as for financial leasing companies and auto financing firms.
The move, which takes effect on June 16, will "encourage commercial banks and other financial institutions to allocate more funds to areas of the real economy in need of support," the central bank said.
The State Council, China's cabinet, first announced the planned cut in late May but did not give details.
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