PBOC cuts reserve requirement ratio for rural banks

The People’s Bank of China said it would cut the reserve requirement ratio by 2 percentage points for county-level rural commercial banks and by half of a percentage point for rural cooperatives, The Wall Street Journal reported, citing a statement on the central bank’s website. After the cut, which takes effect Friday, the ratios will stand at 16% for rural commercial banks and 14% for cooperatives, reducing the share of deposits that these rural lenders need to set aside as reserves. The central bank cautioned that the move, which is aimed at boosting economic growth, doesn’t suggest a change in monetary policy.