중 Jungang Bank Lowers Reserve Requirement Ratio Due to COVID-19 "Supplies 95 Trillion Won"

[Asia Economy Reporter Bu Aeri] The People's Bank of China, the central bank of China, announced on the 13th that it will supply long-term funds worth 550 billion yuan (approximately 95.6 trillion won) to the market by lowering the reserve requirement ratio for some banks.

Since January, the Chinese economy has suffered significant damage due to quarantine measures related to the spread of the novel coronavirus infection (COVID-19), resulting in the suspension of many economic and daily activities.

The People's Bank of China stated on its website that "from the 16th, it plans to lower the reserve requirement ratio by 0.5 to 1.0 percentage points for banks that meet the review criteria," according to local media reports.

The People's Bank of China also announced that it will further reduce the reserve requirement ratio by 1.0 percentage point for joint-stock commercial banks that meet the conditions.

This measure aims to support the development of the real economy and reduce financial costs to facilitate lending.

Earlier, the State Council of China held a meeting chaired by Premier Li Keqiang and requested the People's Bank of China to lower the reserve requirement ratio to respond to COVID-19 and support funding for small and medium-sized enterprises. There are also expectations that the People's Bank of China will soon introduce additional policies such as further reductions in loan interest rates.

This content was produced with the assistance of AI translation services.