China to cut RRR for small and medium-sized banks

China will apply a relatively low required reserve ratio (RRR) for some small and medium-sized banks starting from May 15, the central bank announced Monday.

About 1,000 county-level rural commercial banks will enjoy a favorable RRR of 8 percent, unleashing long-term capital of about 280 billion yuan (41.6 billion U.S. dollars), which will be used as loans to private as well as micro and small enterprises, the People's Bank of China said in an online statement.