China Cuts Bank Reserves to Revive Slowing Economy
China's central bank is reducing the amount of reserves banks must hold in an effort to spur lending and revive a sharply slowing economy.
The People's Bank of China announced Saturday that the bank reserve ratio requirement is being reduced a half percentage point as of next Friday.
The move brings the rate down to 20 percent for most major banks and effectively frees up billions of dollars for lending.
It follows the release of statistics last week that showed the economy slowing more rapidly than economists expected. Flagging growth in the world's second-largest economy deprives the global economy of buoyancy while it is already trying to ward off continuing financial turmoil in Europe.