Helping hand: The signage outside an Industrial and Commercial Bank of China branch in Shanghai. The central bank’s supportive measures to banks are part of efforts to cushion the economy from external uncertainties. — Bloomberg
BEIJING: Loan prime rates, the market-based benchmark lending rates of China, could decline in the second quarter of the year and ease the financing burden in the real economy thanks to a series of measures to reduce the funding costs of banks, market experts say.
They made those remarks after the People’s Bank of China (PBoC), the nation’s central bank, announced a cut in the reserve requirement ratio (RRR) on Friday that will save financial institutions about 6.5 billion yuan (US$1.02bil or RM4.32bil) annually in funding costs.
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