① The People's Bank of China has lowered the deposit reserve ratio of Financial Institutions by 0.5 percentage points starting from May 15, providing approximately 1 trillion yuan in long-term liquidity to the market; ② This adjustment aims to encourage Financial Institutions to support the real economy, especially in the fields of auto finance and leasing.
According to the Financial Association on May 15, the People's Bank of China recently announced that starting from May 15, it will lower the deposit reserve ratio of Financial Institutions by 0.5 percentage points (excluding Financial Institutions already implementing a 5% deposit reserve ratio), and decrease the deposit reserve ratio of auto finance companies and financial leasing companies by 5 percentage points.
The reduction of the deposit reserve ratio by 0.5 percentage points is expected to provide approximately 1 trillion yuan in long-term liquidity to the market. The deposit reserve ratio for auto finance companies and financial leasing companies will be lowered from the original 5% to 0%, enhancing the credit supply capacity of these two types of Institutions in specific fields.
