PBOC says targeted RRR cut to take effect on February 27

People's Bank of China on the reserve requirement ratio (RRR)

• Referring to the Bank extending its programme to allow financial institutions that support rural finance and small enterprises to apply for a lower required level of cash reserves
• The reserve requirement ratio (RRR) is the amount of cash banks they must hold as reserves
• If they are lenders to the agricultural sector and small companies (thats in a nutshell, its more complex than that!) the PBOC allows them to have a lower RRR
• PBOC is assessing banks' 2016 loan books to ascertain which banks are eligible for the lower RRR

More:

• PBOC says adjustments to RRR targeted rates will be made both up and down
• Most banks meeting the targeted RRR requirements will continue to enjoy a preferential RRR rate