China Said to Plan Waiving Reserve Requirement for Some Deposits
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China plans to temporarily waive a requirement for banks to set aside reserves for some deposits, people with knowledge of the matter said, highlighting efforts to boost lending amid a slowdown of the world’s second-largest economy.
Commercial lenders won’t be required to set aside reserves for the savings that they hold for non-deposit-taking financial institutions, the people said. The waiver is part of planned changes to how banks’ loan-to-deposit ratios are calculated, said the people, who asked not to be identified as they weren’t authorized to discuss the plan publicly.