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.