The People’s Bank of China, China’s central bank, lent RMB 200 billion ($1.7 billion) to financial institutions via its one-year medium-term lending facility (MLF) on Monday, with the interest rate unchanged at 3.3%, reported CNBC.
The PBoC said it conducted the loans to maintain reasonably ample banking system liquidity.
A batch of MLF loans with a value of RMB 188.5 billion are due to mature on this week. The bank said on Monday it would not conduct reverse repurchase operations and no reverse repos are due to mature.
The central bank also said it would implement a third phase of cuts to the reserve requirement ratio for county-level rural commercial banks, releasing long-term capital worth about RMB 100 billion as it had previously announced.