New Corona Measures Central Bank of China 6 trillion yen for small, medium and micro support April 20 20:38
The Chinese central bank has announced that it will reduce the deposit reserve ratio of financial institutions and supply more than 6 trillion yen in Japanese yen to finance loans to SMEs and micro enterprises. The reduction in the reserve ratio is a continuation of last month, and is helping companies affected by the new coronavirus raise their cash.
The deposit reserve ratio represents the ratio of the total deposits held by Chinese financial institutions that must be deposited to the central bank, the People's Bank of China.
The People's Bank of China announced Tuesday that it will reduce its deposit reserve ratio by 1% for small and medium-sized financial institutions based in local cities and rural areas twice this month and next month.
This will provide the market with RMB400 billion and more than JPY6.1 trillion in Japanese yen.
Increasing the funds available at the target financial institutions will lead to an increase in financing to the main lenders, small and micro enterprises, and a reduction in interest rates. The People's Bank of China has lowered its deposit reserve ratio last month and has supplied more than 8 trillion yen.
In China, the People's Bank of China is resuming corporate activities in order to recover the economy that has fallen due to the new coronavirus. We aim to support and boost operations.