China’s central bank says it would cut the reserve requirements for smaller banks to release around 56.3 billion dollars in liquidity, a move to counter the corona virus impact on enterprises. 

The People’s Bank of China says it will also slash the interest it pays on financial institutions’ excess reserves for the first time in 12 years, to encourage them to use the cash rather than store it with the central bank.

The moves are the latest in a series of fund injections to help the country through the fallout from the COVID-19 crisis.

The measure is also expected to benefit around 4,000 smaller banks, which make up the vast majority of institutions in the banking system.