PBOC injects cash into banks to ease stress

It added $101b (CNY700b) of one-year funding via the medium-term lending facility.

The People’s Bank of China (PBOC) has supplied liquidity to commercial banks to help them manage incoming government bond sales, reports Bloomberg.

The central bank added $101b (CNY700b) of one-year funding via the medium-term lending facility, meant to offset the $57.6b (CNY400b) in loans coming due 17 August and another $21.6b (CNY150b) maturing on 26 August.

In addition, the central bank last week offered the most short-term funds since May, replenishing a banking system which needs about $500b this month.

The net injection indicates “a more accommodative stance on keeping liquidity levels ample” so that commercial banks can continue to support bond issuance and to stabilize credit growth, said Liu Peiqian, a China economist at Natwest Markets in Singapore.

The move is “a signal to ensure policy continuity and stability” rather than a reaction to a slower pace of economic recovery, she said.

Here’s more from Bloomberg.

Also Read

Cambodia enables QR payments from foreign e-wallets through Alipay+

Hong Kong to rename ‘virtual banks’ to ‘digital banks’

Since you're here...

...there are many ways you can work with us to advertise your company and connect to your customers. Our team can help you dight and create an advertising campaign, in print and digital, on this website and in print magazine.

We can also organize a real life or digital event for you and find thought leader speakers as well as industry leaders, who could be your potential partners, to join the event. We also run some awards programmes which give you an opportunity to be recognized for your achievements during the year and you can join this as a participant or a sponsor.

Let us help you drive your business forward with a good partnership!

I want to download the media kit