Beijing—China's central bank reduced the amount of reserves commercial banks are required to hold, freeing up money for lending in the latest easing measure to shore up the world's second-largest economy. The People's Bank of China's percentage point cut in the reserve requirement lowers the reserve-requirement ratio, or RRR, to 11.5 percent for large banks. The move frees up about US$79 billion in additional funds that banks can now lend. by how much did excess reserves in China increase and by how much did the lending capacity
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Beijing—China's central bank reduced the amount of reserves commercial banks are required to hold, freeing up money for lending in the latest easing measure to shore up the world's second-largest economy. |
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The People's Bank of China's percentage point cut in the reserve requirement lowers the reserve-requirement ratio, or RRR, to 11.5 percent for large banks. The move frees up about US$79 billion in additional funds that banks can now lend. by how much did |
Reserve requirements are the number of funds that a bank holds in reserve to make sure that it can meet liabilities in case of sudden withdrawals. Reserve requirements are a tool utilized by the central bank to rise or fall the money supply in the economy and influence rates of interest.
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