According to the two people with the knowledge of the matter, the People’s Bank of China (PBOC), China’s central bank is considering easing some of its capital requirements for commercial banks, Reuters reports.
The sources said that the PBOC has preliminarily decided to lower the “structural” and “pro-cyclical contribution” parameters in its Macro-Prudential Assessments (MPAs) for banks, with the extent of the adjustments determined by the province.
The central banks steps to encourage commercial banks to spur lending to businesses, especially to small and medium-sized firms suggest that the world’s no, 2 economy is slowing down.
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