China Cuts Reserve Requirements The People's Bank of China (PBOC) has cut the reserve requirement for small and medium-sized banks. The cut from 7 percent to 6 percent will free up 400 billion yuan ($56 billion) in reserves for the country's 4,000 affected banks, many of which serve rural areas. The reserve cuts are seen as another response to the economic calamity caused by the coronavirus pandemic. Economic lockdowns in China and around the world have hit Chinese exports hard, with GDP stalling and unemployment rising. The PBOC's cuts are intended to encourage more lending and borrowing, especially among smaller enterprises. Source: News reports, April 5-8, 2020.

China Cuts Reserve Requirements The People's Bank of China (PBOC) has cut the reserve requirement for small and medium-sized banks. The cut from 7 percent to 6 percent will free up 400 billion yuan ($56 billion) in reserves for the country's 4,000 affected banks, many of which serve rural areas. The reserve cuts are seen as another response to the economic calamity caused by the coronavirus pandemic. Economic lockdowns in China and around the world have hit Chinese exports hard, with GDP stalling and unemployment rising. The PBOC's cuts are intended to encourage more lending and borrowing, especially among smaller enterprises. Source: News reports, April 5-8, 2020.

Macroeconomics: Private and Public Choice (MindTap Course List)

16th Edition

ISBN:9781305506756

Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson

Publisher:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson

Chapter13: Money And The Banking System

Section: Chapter Questions

Problem 18CQ

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