China injects liquidity into market via medium-term lending facility
DATE:2015-08-20 SOURCE:Xinhua News Agency
BEIJING, Aug. 19 (Xinhua) -- The People's Bank of China (PBOC), the central bank, pumped 110 billion yuan (17 billion U.S. dollars) into the market on Wednesday through medium-term lending facility (MLF).
A total of 14 financial institutions received money from the central bank for six months at an interest rate of 3.35 percent.
"The move is aimed at maintaining proper liquidity in the market," said the PBOC in a brief online statement.
The PBOC said it will guide banks to lend the money to small businesses and the agricultural sector.
The MLF is a new liquidity tool designed for commercial and policy banks to borrow from the central bank by using securities as collateral.