China's central bank's new cut in the reserve requirement ratio (RRR) for small and medium-sized banks will boost supply-side structural reform in the financial sector at a time when the economy is slowing down in its transition from high-speed growth to high-quality development, market experts said. The RRR is the minimum fraction of customer deposits that commercial banks must retain as reserves instead of lending out. The new round of policy easing, the second this year, will create additional liquidity of nearly 280 billion yuan ($40.58 billion) for some small and medium-sized banks for lending to private enterprises as well as micro and small firms.