The People's Bank of China (PBOC) announced on Sunday that it lowered the amount of cash that banks must hold as reserves. The government hopes to spur bank lending and combat slowing growth. The central bank cut the reserve requirement ratio for all banks by 100 basis points to 18.5%.

The cut is effective from April 20.

The reserve requirement ratio will be lowered by another percentage point for rural banks, two additional percentage points for the central bank's Agricultural Development Bank, and a further 0.5% for banks lending to agriculture and small businesses.