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BEIJING, April 19 (Xinhua) -- China's central bank on Sunday decided to lower the reserve requirement ratio (RRR), the minimum level of reserves banks must hold, by one percentage point effective from Monday.
The move aims to "boost structural adjustment Austin Romine Jersey ," the People's Bank of China (PBOC) said, adding it will give an additional one-percentage-point RRR cut to banks engaged in lending to small firms, the farming sector and major water projects.
The Agricultural Development Bank of China, the sole policy lender for agriculture Aaron Judge Jersey , gets an RRR reduction of 2 percentage points.
The central bank will further lower RRR by 0.5 percentage point for state-owned banks and joint-equity commercial banks that have met the authority's criteria for lending to agricultural sector or small- and micro- enterprises, though the central bank does not specify what constitutes the criteria.
This is the second time that the central bank has adopted an across-the-board RRR cut plus targeted cuts following a similar move on Feb. 4.
After the latest change, big banks must hold 18.5 percent of their deposits in reserve. According to estimates by some Chinese institutions, the RRR cut could free up 1.3 trillion yuan (212.2 billion U.S. dollars) into the real economy.
Sunday's RRR cut was within market expectations following lackluster economic performance in the first quarter.
Xu Hongcai Dellin Betances Jersey , director of the Department of Information under China Center for International Economic Exchanges, considers the move "timely."
China's gross domestic product (GDP) growth slowed to 7 percent in the first quarter from 7.3 percent in the final three months of last year, marking the worst result in six years and indicating continuing downward pressure on the economy.
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