According to Reuters article published on March 18, 2023, China's central bank made a "timely" move by pumping liquidity into the banking system to respond to rising pressures in the domestic banking industry and growing risks abroad, a state-owned Chinese newspaper said on Saturday.
The central bank on Friday reduced the amount of cash banks must hold as reserves for the first time this year to support a nascent recovery in the world's second-biggest economy. The cut in the reserve ratio came earlier than financial markets had anticipated.
The Economic Daily said in a front-page article that the move by the People's Bank of China will ease tension after demand for funds had increased significantly amid the economic recovery. The early release of liquidity will also help prepare for the next stage of demand expansion, it said.
"Currently the risks in the overseas banking industry are increasing and the external environment is becoming more and more complicated," the newspaper said.
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Published on March 20, 2023 2:39 PM (GMT+8)Last Updated on March 20, 2023 2:39 PM (GMT+8)
