China Said to Ease Bank Capital Rule to Free Up More Lending
- PBOC tells some banks a specific requirement will be eased
- Change is one of several moves to fend off an economic stall
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China took another step to ease the pressure from its deleveraging campaign, as authorities try to mitigate increasing risks to the economy from the trade war with the U.S.
The People’s Bank of China told some banks on Wednesday that a specific capital requirement will be eased to support lending, according to people familiar with the matter. The change is being made to support local financial institutions in meeting credit demand effectively, said the people, who asked not to be named because the instructions haven’t been made public.