In order to implement the requirements of the Standing Meeting of the State Council, establish a policy framework for the implementation of a lower deposit reserve ratio for small and medium-sized banks, and promote the reduction of financing costs for small and micro enterprises, the People's Bank of China has decided to implement a lower preferential deposit reserve ratio for small and medium-sized banks focusing on local areas and serving county areas from May 15, 2019. For rural commercial banks operating only in their own county-level administrative areas or with branches in other county-level administrative areas but with assets of less than 10 billion yuan, the reserve ratio of the same grade as that of rural credit cooperatives is implemented, which is currently 8%. About 1000 County agricultural and commercial banks can enjoy this preferential policy, releasing long-term funds of about 280 billion yuan, all of which are used to grant loans to private and small and micro enterprises.