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The People's Bank of China adds funds to banking system to avoid shortage

Monday 15 June 2020 09:55 CET | News

China has offered medium-term loans to banks, in the government’s effort to avoid a funding crunch in June 2020.

The People’s Bank of China added USD 28 billion through the medium-term lending facility at a rate of 2.95%. The injection was expected as the central bank announced it planned to roll over the one-year funds.

At least EUR 338 billion will evaporate from the nation’s financial system in June 2020 as short-term bank debt and policy loans mature. According to Bloomberg, this puts pressure on the central bank to maintain its supportive policy stance without fuelling a credit bubble. 


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Keywords: China, banking, loans, banks, The People’s Bank of China
Categories: Banking & Fintech
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Countries: China
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Banking & Fintech