WAM
15 Sep 2023, 14:44 GMT+10
BEIJING, 15th September, 2023 (WAM) -- The People's Bank of China (PBOC) on Friday unveiled its decision to trim the reserve requirement ratio (RRR) for financial institutions by 0.25 percentage points, effective immediately.
Notably, institutions already operating with a 5% RRR are exempted from this change. This move marks the second significant RRR reduction by the PBOC this year.
According to China Economic Net, this recalibration is projected to free up around 500 billion yuan in mid-to-long-term liquidity. Such an influx is anticipated to galvanise financial institutions, incentivising them to channel more funds into the real economy, bolstering its ongoing recovery and sustained growth trajectory.
One of the primary objectives of this RRR adjustment is to further enhance and refine the financial framework, ensuring decreased financing costs for the real economy. To put this in perspective, the PBOC has already implemented two interest rate reductions this year, resulting in a notable dip in financing costs.
This recent RRR cut is poised to further diminish banks' liability-side funding costs, offering more leeway for a potential reduction in lending rates on the asset side. This, in turn, paves the way for lowered financing expenses for businesses and consumer credit borrowers.
In addition to its direct economic implications, this RRR modification is also integral in stabilising the exchange rate. By bolstering the robustness and reliability of funds within the banking sector, refining liquidity distribution, and rejuvenating market dynamism, this initiative is primed to support the renminbi's stabilisation and potential appreciation.
Get a daily dose of Tennis Times news through our daily email, its complimentary and keeps you fully up to date with world and business news as well.
Publish news of your business, community or sports group, personnel appointments, major event and more by submitting a news release to Tennis Times.
More Information(Photo credit: Lon Horwedel-Imagn Images) The Detroit Pistons saw their longest winning streak in 17 years end on Friday night. They...
(Photo credit: Geoff Burke-Imagn Images) The St. Louis Blues are finally seeing a payoff for their progress made since Jim Montgomery...
(Photo credit: Winslow Townson-Imagn Images) Donovan Mitchell scored 41 points, including 26 in the second half, as the visiting...
(250301) -- ACAPULCO, March 1, 2025 (Xinhua) -- Nakashima Brandon of the United States hits a return during the singles semifinal match...
(Photo credit: Kevin Jairaj-Imagn Images) The Washington Wizards and Charlotte Hornets meet Saturday bearing the load of disappointing...
New Delhi [India], March 1 (ANI): Elevating the spirit of sports in the national capital, Indian sport shooter Deepak Kumar and TV...
DUBLIN, Ireland: Dublin has unveiled a new 5.5 million euro cycle track along the south quays, enhancing safety and accessibility for...
DUBAI, UAE - Fuelre4m has announced a new partnership with one of the UAE's largest yacht operators aimed at improving fuel efficiency...
CAIRO — Observant Muslims the world over will soon be united in a ritual of daily fasting from dawn to sunset as the Islamic holy...
BEIJING, March 1 (Xinhua) -- A selection of the best press photos from Xinhua. A drone photo taken on Feb. 27, 2025 shows the construction...
BEIJING, March 1 (Xinhua) -- In a significant move to open its telecommunication sector further, China has approved 13 foreign-invested...
(Photo credit: Jeff Romance / USA TODAY NETWORK via Imagn Images) Jake Knapp followed his opening-round 59 with a far more modest,...