Incentive for rural finance
China Daily | Updated: 2014-04-24 07:00
THE CUT IN THE RESERVE REQUIREMENT ratio for rural financial institutions is a small step to facilitate the flow of credit in China's rural areas.
However, to narrow the country's huge urban-rural development gap, more such financial support is badly needed to upgrade the rural economy and raise farmers' incomes.
On Tuesday, the central bank announced a 2-percentage-point cut in the reserve requirement ratio for rural commercial banks and a 0.5-percentage-point cut for rural cooperative unions beginning Friday.
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