Central Bank of China cuts cash reserve ratio for banks


BEIJING: China's central bank has cut its cash reserve ratio for its banks. The reduction will take effect from December 15. The decision was taken by the People's Bank of China to support a slowing economy due to the downturn in the property market in China.

The cash reserve ratio has been reduced by half a per cent, according to a statement from the People's Bank of China.

This reduction is part of increasing liquidity in the economy. The cuts will release ૮૮ 15 billion in liquidity into China's financial system.

Released figures indicate that China's economy and industries are stabilizing. However, the Evergrand crisis has forced China to take control of the property market.

A reduction in the reserve ratio will not result in a reduction in lending costs but will reduce the amount that banks have to reserve with the central bank.


Comments

Popular posts from this blog

Information about soymilk and casein products

Agricultural exports to grow by 9% to $26.3 billion in FY 2023

Decline in spot and futures market in various edible oils