March 10,2011

China May Lower RRR for Certified County Banks in April

By CSC staff,Shanghai

According to a document issued in Sep 2010 by the PBoC and CBRC, if county banks have increased loans to local areas and met some other certain requirements last year, they could enjoy RRR 1ppt lower than other banks for a year, effective from 1 April 2011. For those with healthy financials, they can apply for re-lending at discounted rates.

This doc was made in before the introduction of DD-RRR, so please don't take it as sign of "easing". Rather, it suggests that the PBoC is encouraging rural credit supply. It's more about micro than macro policy.


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