China's Central bank slashes banks' reserve ratio to boost lending
China's central bank has cut the reserve requirement ratio for financial institutions by 50 basis points effective September 16 in the latest effort to bolster the economy. The reserve requirement ratio is the amount of cash that banks must hold in its reserves. It is the third time this year that the People's Bank of China has slashed the ratio. The move will release a total of 900 billion yuan, or over 126 billion U.S. dollars in liquidity. The central bank has cut the reserve requirement ratio seven times since early 2018.