All a bit murky what is actually being done, but it appears something is afoot (I don’t think I’ve written “afoot” before … I like it, expect more of that
- A statement posted on the website of the State Council, China’s cabinet, said it will reduce the share of deposits that some rural commercial banks need to hold as cash at the central bank
- It didn’t say how much the level would change
- The cut will apply to banks that “meet certain standards,” the statement said, without elaborating
The report goes on:
The reserve cut will not have a major impact on the economy as it will not affect banks in key urban areas. But qualifying rural banks will have more cash available for lending as a result of the move.
Its in the Wall Street Journal, which is gated (try a Google search for the full article): China to Cut Reserve Requirements for Some Rural Banks
Added – Aha! Here’s an ungated version of the same report