China’s top financial authorities have outlined the use of a range of monetary policy tools including further cuts to the reserve ratio for banks to help drive the country’s rural village revitalisation efforts.
A slew of China’s top financial authorities recently convened the “Teleconference on Financial Support for the Consolidation and Expansion of Poverty Alleviation Results and Comprehensively Driving Rural Village Revitalisation” (金融支持巩固拓展脱贫攻坚成果 全面推进乡村振兴电视电话会议), according to an official statement made by the People’s Bank of China (PBOC) on 26 August.
Participating authorities included PBOC, the Ministry of Finance, the China Banking and Insurance Regulatory Commission (CBIRC), the China Securities Regulatory Commission (CSRC) and the Ministry of Agriculture and Rural Affairs (MOA).
The meeting called for “using re-loans and re-discounts, the deposit reserve ratio and other monetary policy tools to provide funding support to financial institutions servicing rural village revitalisation.”
The meeting also called for making efforts by financial institutions to service the Chinese central government’s rural village revitalisation campaign a part of performance assessments.
Domestic analysts say that the measures outlined flag the possibility of further targeted reserve ratio cuts for financial institutions that specialise in servicing rural areas, including those at the county level.
According to the meeting China’s ongoing poverty alleviation campaign had seen the targeted provision of 9.2 trillion yuan in targeted poverty alleviation loans to support disadvantaged borrowers on 90 million occasions.