Support to financial institutions from the People’s Bank of China
The People’s Bank of China gave 779 billion yuan today to the banking system through medium-term credit facility.
The interest rate on the loan, which was given with a 1-year maturity, was maintained at 2.75%. When it is calculated that the medium-term loan of 700 billion yuan will be returned this month, the net liquidity provided by the People’s Bank of China to the banking system was 79 billion yuan.
The People’s Bank of China also held 7- and 14-day reverse repo operations today. The Central Bank of China, which gave 82 billion yuan in 7-day reverse repo with 2.00 percent interest rate, also gave 74 billion yuan in 14-day reverse repo. The interest rate was maintained at 2.15%.