This undated photo shows the headquarter of the People's Bank of China (PBOC), China's central bank, in Beijing. (PHOTO / XINHUA)
BEIJING - China's central bank has released measures to regulate automatic pledge financing business to improve financing efficiency and optimize business.
ALSO READ: PBOC stresses financial sector stability after key assessment
The regulation specifies the financing balance limit of different financial
institutions, unifies daytime and overnight rates of automatic pledge financing
and expands the scope of collateral bonds, said the People's Bank of China
(PBOC) in a statement.
Automatic pledge financing business is a payment support mechanism for
financial institutions. It automatically provides funding when the clearing
accounts of financial institutions face a funding shortage.
The mechanism helps improve clearing efficiency and ensure clearing security,
but is not a liquidity tool, said the PBOC.
The regulation will take effect on Jan 29, 2018, replacing the interim
regulative measures released in 2005.
READ MORE: PBOC skips open market operations on sufficient liquidity
Copyright 1995 - 2024. All rights reserved. The content (including but not limited to text, photo, multimedia information, etc) published in this site belongs to China Daily. Without written authorization from China Daily, such content shall not be republished or used in any form.
CHINA DAILY HONG KONG NEWS |
OPEN |