Headquarters of the People's Bank of China, the central bank, is pictured in Beijing, China. -Reuters
China's central bank said on Sunday that liquidity in the banking system is reasonably ample, and that it would use various monetary policy tools including medium-term facility loans and reverse repurchase agreements to stabilize money markets. The People's Bank of China (PBOC) said it would boost medium- and small-sized banking liquidity through relatively low reserve requirements for such banks.
A previously announced phased cut to reserve requirements is expected to release 100 billion yuan ($14.49 billion) in long-term liquidity to medium- and small-sized banks on June 17, the PBOC said.The PBOC said a recent regulatory takeover of Inner Mongolia-based Baoshang Bank was a standalone case, and that regulators have no plans for further takeovers at present.
---Reuters, Shanghai
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