To Effectively Prevent Liquidity Risks In The Banking System, The Central Bank Promotes New Monetary Instruments.

< p > the central bank said that the fluctuation of the short-term liquidity supply and demand in China's banking system has been increasing in recent years due to the increase of the international economy < a href= "http://www.91se91.com/" > Finance < /a > the uncertainty of the situation and the fluctuation of various factors affecting liquidity. Especially when multiple factors overlap or market expectations change, it is possible that the short supply and demand gap of short-term funds can not be solved in time through money market financing, which not only increases the difficulty of liquidity management of financial institutions, but also is unfavorable for the central bank to regulate the total liquidity. In order to improve the effectiveness of monetary control, effectively prevent the liquidity risk of banking system and enhance the effectiveness of regulation and control of money market interest rates, we need to further innovate and improve the liquidity supply and regulation mechanism, and constantly improve the ability to deal with short-term liquidity fluctuations, so as to provide the necessary Liquidity Guarantee for maintaining the normal functioning of the financial system. < /p >
Referring to international experience, the people's Bank of China set up a standing a href= "http://www.91se91.com/" > Loan "/a" convenience in 2013 to apply temporary fluctuations in the liquidity of the banking system in P. In 1-9 months, the people's Bank of China launched a convenient operation of standing loans and achieved good results. Before the Spring Festival of 2013, the people's Bank of China solved the financing gap of some commercial banks due to large amounts of cash through permanent loans. In June, when the money market was affected by a combination of factors, the PBC provided liquidity support to the financial institutions that met the requirements of the state's industrial policies and macro prudential requirements, supported the real economy, and increased the volume and progress of the loans in a convenient way. The institutions that had problems in liquidity management also took corresponding measures to provide liquidity support and maintain financial stability. The people's Bank of China will freeze long-term liquidity through issuing three consecutive central banks, providing necessary short-term liquidity support through standing loan convenience and open market reverse repurchase. The combination of the two operations is conducive to maintaining a moderate level of liquidity under the uncertain balance of payments situation in the future, and also conducive to maintaining stability in the currency market. Since the three quarter, in view of the changes in China's balance of payments situation and the increase in foreign exchange inflows, standing lending has facilitated moderate and orderly decrement in order to maintain a smooth banking system liquidity. Generally speaking, carrying out convenient operation of standing loans helps to effectively regulate the supply of market liquidity, promote the smooth operation of financial markets and guard against financial risks. < /p >
< p > < strong > Outline < /strong > < /p >.
According to international experience, the central bank usually uses two kinds of monetary policy tools, namely, standing loan convenience and open market operation, to manage liquidity in P. The main features of the convenience of standing loans are: first, the initiative initiated by financial institutions. Financial institutions can apply for standing loan convenience according to their own liquidity needs. Two, the standing loan facility is a "one to one" transaction between the central bank and financial institutions, with strong pertinence. The three is that the standing loans are convenient and have wide coverage, usually covering deposit financial institutions. < /p >
Most of the central banks in the world have the monetary policy tools of "a href=" http://www.91se91.com/ "loan" /a "convenience", but their names are different, such as the discount window of the Federal Reserve (DiscountWindow), the margin lending facility of the European Central Bank (MarginalLendingFacility), the operational standing convenience of the Bank of England (OperationalStandingFacility), the supplementary loan facility of the Bank of Japan (ComplementaryLendingFacility), the standing liquidity convenience of the Bank of Canada (StandingLiquidityFacility), the standing loan facility (P) of the India monetary authority, the secured loan of the Central Bank of the emerging market economies, the marginal standing convenience of the Central Bank of India, the liquidity adjustment loan of the Central Bank of Korea, the mortgage loan of the Central Bank of Hong Kong and so on. < p > < /p >
Referring to international experience, the people's Bank of China established a standing loan facility (StandingLendingFacility, SLF) in 2013. P Standing loan convenience is the normal liquidity supply channel of the PBC, and its main function is to meet the large liquidity demand of financial institutions with a longer term. The targets are mainly policy banks and national commercial banks. The term is 1-3 months. The interest rate level is comprehensively determined according to the needs of monetary policy regulation and market interest rate guidance. The standing loan facilities are distributed by mortgage. The eligible collateral includes high credit rating bond assets and high quality credit assets. < /p >