Change in banks' cash reserves aimed at boosting agriculture

Reduction for qualified rural institutions expected to ease loans at grassroots level

China will reduce the amount of cash that village commercial banks keep at the central bank to increase financial support for the agricultural sector, the State Council decided at a Cabinet meeting on Wednesday.

The reserve requirement ratio will be reduced for qualified rural commercial banks and cooperative banks in counties, as part of the packaged policies that Premier Li Keqiang endorsed at the meeting.