China to waive reserve requirements for some deposits

FXStreet (Bali) - China is planning to remove banks' reserve requirements for some deposits, according to Bloomberg, citing people with knowledge of the matter, with the move aimed at stimulating lending practices as evidence of a slowdown in the economy mounts.

Bloomberg carries the report, noting: "Commercial lenders won’t be required to set aside reserves for the savings that they hold for non-deposit-taking financial institutions, the people said. The waiver is part of planned changes to how banks’ loan-to-deposit ratios are calculated, said the people, who asked not to be identified as they weren’t authorized to discuss the plan publicly."