China to cut reserve ratio for village banks-state radio
BEIJING, April 16
BEIJING, April 16 (Reuters) - China will reduce the amount of cash that village commercial banks keep at the central bank to increase financial support for the agricultural sector, Premier Li Keqiang was quoted as saying by state radio on Wednesday after a cabinet meeting.
Li did not state and when and by how much the reserve requirement ratio (RRR) would be lowered for lenders, saying only that an appropriate reduction would be made for qualifying banks.
China's central bank sets different RRR requirements for Chinese banks that depend partly on the scale of their lending business. The ratio stands at 20 percent for China's biggest banks, which are generally subject to the most stringent requirements.
(Reporting by Li Ran and Koh Gui Qing; Editing by Nick Macfie)