According to a report by Reuters, China's central bank said that it would cut the amount of cash that some banks must hold as reserves by 50 basis points, releasing 108 billion dollars in liquidity, in order to accelerate the pace of debt-for-equity swaps and encourage lending to smaller firms.
On Sunday, the People's Bank of China said that the latest cut in some banks' reserve requirement ratios, currently 16 percent for large banks and 14 percent for smaller banks, are scheduled to take effect on July 5th.
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