Another 100bn yuan made available for loans programme
by Nadeem Xu
(ATF) China moved Wednesday to pump more money into the banking system in a bid to help the country’s businesses recover from the coronavirus crisis.
The People's Bank of China, the country’s central bank, lowered the interest rate on its medium-term lending facility (MLF) loans by 20 basis points and provided another 100 billion yuan ($14.2bn) for the programme.
That lowered the one-year MLF rate to 2.95% from 3.1%.
The move came as an earlier decrease in the cash buffers banks are obliged to maintain fed another 200bn yuan into the system
The MLF tool was introduced in 2014 to help commercial and policy banks maintain liquidity by allowing them to borrow from the central bank using securities as collateral.
No MLF loans are set to mature on Wednesday.