China’s central bank cuts requirement to support small firms

China’s central bank cuts requirement to support small firms

China's central bank, People's Bank of China has announced its decision to allow reserve-requirement cut to Industrial Bank Co. and China Minsheng Banking Corp in order to allow the small firms to boost business.

The central bank is aiming to boost economic growth without the need for a large scale economic stimulus programme. The PBOC has approved a half percentage-point cut for Industrial Bank and Minsheng Bank.

Analysts also said that the China Merchants Bank Co. was also included in the list. Officials are aiming to increase growth as the world's second largest economy is expected to record its slowest growth since 1990. However, they are not in favour of a major economic stimulus package that would increase credit risk for the economy.

The central bank is expanding the group of lenders covered by a reserve-ratio move and is aiming to increase funding for small and micro businesses and agriculture in the country. Analysts said that the move shows that the China's neutral monetary policy is moving towards relaxation to boost economic growth but the central bank does not want to go all out and offer large scale economic stimulus to the Chinese economy.

The three banks had about 7 trillion yuan of combined deposits during the previous year indicating that a half point relaxation will free up about 35 billion yuan for the banks.


User login



You May Have Missed...

Map Shows Noisiest and Quietest Place in the US
Thu, 02/19/2015 - 13:09

It has been reported that a team of researchers from the National Park Service's natural Sounds project has recently released a map of the United...


Nigeria Update

World Malaria Day Draws Attention over Need for Renewed Commitment
Sat, 04/26/2014 - 12:48

The world commemorated the Annual Malaria Day on April 25 and the attention was drawn towards...


Economy Watch

President Obama Proposes $4 Trillion Budget, 15% goes to Defense
Tue, 02/03/2015 - 07:58

The Obama administration has proposed a $4 trillion budget on Monday. The budget has included $...


Health Tonight

Skin test may be helpful to diagnose Alzheimer's disease
Thu, 03/05/2015 - 12:39

Researchers believe that a skin test could someday help positively diagnose someone suspected of...


Science Tonight

Astronomers witness Multiple-Star System in Initial Stage of Formation
Sun, 03/15/2015 - 05:08

Astronomers said that for the first time they have observed a multiple-star system in the first...


UK News

Financial problems related to eating disorders among students
Tue, 02/17/2015 - 08:49

According to a research, facing financial difficulties at university could lead to increased...


Pharmaceuticals

Astrazeneca’s Experimental Drug to Treat COPD Fails to Reduce Acute Exacerbation
Mon, 09/08/2014 - 13:17

On Monday, AstraZeneca PLC announced that Phase IIa study of benralizumab, an experimental drug...


US News

Students present a zombie apocalypse simulation to explain spread of disease
Fri, 03/06/2015 - 14:16

A group of students at the Cornell University have adopted a unique concept to explain how...


Technology Tonight

Barack Obama
Fri, 02/13/2015 - 08:59

It is highly probable that the President Barack Obama will announce a new plan with regard to...