Let banking tools aid small businesses

THE PEOPLE'S BANK OF CHINA ON WEDNESDAY announced it was reducing the reserve requirement ratio by 0.5 percentage points for financial institutions, with additional measures for special policy banks, in order to support their ability to adjust their structure. Comments:

Traditionally, demand for credit grows sharply in January because people and enterprises need cash to repay their debts before the Lunar New Year; the repo rate usually rises above 4 percent at this time of the year. To lower the RRR is only an ordinary measure of the central bank for this special month.

China Securities newspaper, Feb 5