Reuters reported that the central bank is said to have rolled over the MLF costing around CNY350bn ($56bn) besides adding more for some banks.
By creating the MLF monetary tool, which is same as the discount window of the US Federal Reserve, the bank aims to keep aside designated amounts of three months money for individual banks which can be utilised by them in case of any additional liquidity.
In 2014, the bank carried out MLF operations worth CNY1.14tr on an accumulative basis, with the outstanding amount at CNY644.5bn ($103bn) by the end of year.
In December PBOC announced plans to inject about CNY400bn ($65bn) through China Development Bank in an effort to pump more cash into the banking system. The move followed CNY500bn ($80bn) injection into the country’s five biggest state-owned banks in September.
Established on 1 December 1948, PBOC has the power to control monetary policy and regulate financial institutions in mainland China.
With more financial assets, the bank is second only to the Federal Reserve System of the US in terms of overall central bank assets.
The bank was established based on the consolidation of the Huabei Bank, the Beihai Bank and the Xibei Farmer Bank and its initial headquarters was located in Shijiazhuang, Hebei. Later on it was shifted to Beijing in 1949.
Image: People’s Bank of China headquarters in Beijing. Photo: courtesy of Yongxinge
