People’s Bank of China allows commercial banks to hold less capital in reserve
China’s central bank has acted to pump more liquidity into the country’s economy in an attempt to prevent growth slowing in 2020.
The People’s Bank of China is allowing commercial banks to hold less capital in reserve, freeing up about 800bn yuan (£87bn) in new funds for loans. It will cut China’s banks’ reserve requirement ratio (RRR) by 50 basis points, to 12.5%, from 6 January.
Source: Guardian Markets