Fitch Ratings's Wu Sees No Significant Monetary Loosening From PBOC in 2020

The transcript discusses the People's Bank of China's (PBOC) ongoing credit support measures, including reductions in reserve requirements. Despite expectations for broader easing, significant monetary loosening is not anticipated due to bank capital constraints. The focus is on systematically important banks and potential higher capital requirements. Chinese banks face profitability pressures as they are encouraged to lower interest rates to support the economy. The balance between economic support and regulatory requirements presents challenges, with fine-tuning of policies expected to ease funding costs.

What measures have been taken by the PBOC to support financing?

What concerns are raised about the loans being made to smaller businesses?