BEIJING, June 1 (Xinhuanet): The central government of China will not shift its policy direction amid the economic slowdown, but will intensify targeted financial easing in coming months, the State Council said in a statement on Friday.
The statement, which followed an executive meeting of the council, said the government will strengthen the "targeted reduction" of the reserve requirement ratio - the amount of money banks have to set aside as reserves.
The statement said banks that have lent "a certain portion" of their total loans to agriculture-related firms, small and micro-sized enterprises and other companies that cater to economic restructuring demand, would enjoy the ratio cut. It did not specify the portion required.
In April, China cut the reserve requirement ratio for rural banks by up to 2.0 percentage points, but did not reduce the ratio across the board.
The ratio for large financial institutions is 20 per cent and it is 16.5 per cent for smaller ones. Many economists believe the ratio is too high to release sufficient liquidity to spur the slowing economy.
China cuts reserve ratio to tackle slowdown
FE Team | Published: June 02, 2014 00:00:00 | Updated: November 30, 2026 06:01:00
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