China News Service, November 25. According to the website of the central bank, the People's Bank of China decided to reduce the deposit reserve ratio of financial institutions by 0.25 percentage points on December 5, 2022 (excluding financial institutions that have implemented a 5% deposit reserve ratio).
The relevant person in charge of the People's Bank of China responded to reporters' questions about the reduction of the deposit reserve ratio of financial institutions, saying that
the total release of long-term funds by this reduction is about 500 billion yuan.
This RRR cut is a comprehensive RRR
cut. Except for some corporate financial institutions that have implemented a 5% deposit reserve ratio, other financial institutions generally lowered the deposit reserve ratio by 0.25 percentage points.
Regarding the purpose of this RRR cut, the person in charge said, first, to maintain reasonable and sufficient liquidity, maintain a reasonable growth in the total amount of money and credit, implement a package of policy measures to stabilize the economy, increase support for the real economy, and support the effective quality of the economy. Reasonable growth in promotion and volume.
The second is to optimize the capital structure of financial institutions, increase the long-term stable funding sources of financial institutions, enhance the capital allocation capabilities of financial institutions, and support industries and small, medium and micro enterprises that have been severely affected by the epidemic.
The third is that the RRR cut reduces the capital cost of financial institutions by about 5.6 billion yuan per year, which can promote the reduction of the comprehensive financing cost of the real economy through the transmission of financial institutions.
(Finish)