Translation. Region: Russian Federal
Source: People’s Republic of China in Russian –
Source: People’s Republic of China – State Council News
BEIJING, May 15 (Xinhua) — A 0.5 percentage point reduction in the reserve requirement ratio (RRR) for eligible financial institutions took effect on Thursday, which is expected to provide about 1 trillion yuan (about 139 billion U.S. dollars) of long-term liquidity to the financial market.
Last week, the People’s Bank of China (the central bank of China) announced it was prepared to cut the RRR, which was the first such move since the beginning of this year.
The RRR cut is one of a host of support measures, which also include interest rate cuts and increased financial support through additional lending, recently announced by monetary and financial authorities as the world’s second-largest economy steps up efforts to stabilize markets and support the economic recovery amid challenges to the external environment.
In addition, starting Thursday, the reserve requirement for companies engaged in auto finance and financial leasing fell to zero from the previous 5 percent, effectively increasing their credit supply in these sectors. -0-