BEIJING (XINHUA) – China’s central bank yesterday injected CNY240.5 billion (USD34.9 billion) of funds into the market to maintain liquidity, by renewing the targetted medium-term lending facility (TMLF).
The People’s Bank of China (PBOC) renewed CNY257.5 billion in TMLF operations that came due yesterday, with the new operation of CNY240.5 billion.
The funds have a maximum maturity of one year and an annual interest rate of 3.15 per cent, flat with the previous level, the PBOC said on its website. This was the first maturity since the TMLF tool was introduced in December 2018 to encourage loans to small and private businesses.
Large commercial banks, joint-stock banks and major city commercial banks that lend heavily to the real economy and meet macro prudent requirements can apply for the TMLF. No reverse repo operations were conducted yesterday, said the PBOC.