Assessing the Impact of Structural Monetary and Fiscal Policies on Banks China policymakers announced a combination of targeted fiscal and monetary easing measures on September 29, including a 25bp cut in the PSL (pledged supplementary lending) rate, an expansion of PSL support to the "Six Networks" projects, higher quotas for various relending programs, and the first-ever mortgage interest subsidy for eligible first-home purchases (see GS Macro report). From a banking perspective, we believe this latest ro ...