People's Bank of China on the reserve requirement ratio (RRR)
- Referring to the Bank extending its programme to allow financial institutions that support rural finance and small enterprises to apply for a lower required level of cash reserves
- The reserve requirement ratio (RRR) is the amount of cash banks they must hold as reserves
- If they are lenders to the agricultural sector and small companies (thats in a nutshell, its more complex than that!) the PBOC allows them to have a lower RRR
- PBOC is assessing banks' 2016 loan books to ascertain which banks are eligible for the lower RRR
More:
- PBOC says adjustments to RRR targeted rates will be made both up and down
- Most banks meeting the targeted RRR requirements will continue to enjoy a preferential RRR rate