Chinanews.com, April 3rd. According to the central bank website, the People's Bank of China decided to lower the target of small and medium-sized banks in April 2020, and lowered the interest rate on excess deposits of financial institutions in the central bank.
In order to support the development of the real economy, increase support for small, medium and micro enterprises, and reduce the actual cost of social financing, the People's Bank of China has decided to provide support to rural credit cooperatives, rural commercial banks, rural cooperative banks, village and township banks, and only within provincial administrative areas. The city commercial banks in operation lowered the deposit reserve ratio by 1 percentage point, and implemented it in two places on April 15 and May 15, each time by 0.5 percentage points, releasing a total of about 400 billion yuan of long-term funds. The People's Bank of China has decided to reduce the excess deposit reserve interest rate of financial institutions in the central bank from 0.72% to 0.35% since April 7.
The People's Bank of China is more flexible in implementing a prudent monetary policy. It puts support for the recovery and development of the real economy in a more prominent position, focusing on reorientation and regulation, taking into account internal and external balance, and maintaining a reasonable and adequate liquidity. The growth of the scale of currency credit and social financing is in line with economic development To create a suitable monetary and financial environment for high-quality development and supply-side structural reforms.