China is cutting the reserve ratio requirement for large banks by 50 bps to 20%, effective on...

|By:, SA News Editor

China is cutting the reserve ratio requirement for large banks by 50 bps to 20%, effective on Friday. The move follows weak data last week and is the third reduction in 6 months, although economists are divided about the effectiveness of the action. One says lending is weak because there are few decent loans to make, not because the banks are short of cash.