BEIJING, May 6 (Xinhua) -- Chinese central bank, the People's Bank of China (PBOC) decided to implement preferential required reserve ratio (RRR) for small and medium-sized banks to reduce financing costs of small and micro- businesses from May 15.
PBOC said in a circular posted on its website Monday that small and small and medium-sized banks focusing on local services and providing services within respective counties can enjoy preferential RRR.
Currently, rural commercial banks which operate business only within respective counties or own branches in other counties but have less than 10 billion yuan assets are required to implement an eight percent RRR, the same as that for rural credit cooperatives.
About 1,000 county-level rural commercial banks are covered by the targeted RRR cut and about 280 billion yuan of funds are expected to be unlocked and pumped into loan financing for private and small and micro-businesses. (Edited by Duan Jing, duanjing@xinhua.org)
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