Concepts and characteristics of new monetary policy tools SLF, MLF and SPL

SLF: The People's Bank of China established a standing loan facility at the beginning of 20 13. It is the normal liquidity supply channel of the People's Bank of China, and its main function is to meet the long-term liquidity demand of financial institutions. The targets are mainly policy banks and national commercial banks. The term is 1-3 months. The interest rate level is comprehensively determined according to the needs of monetary policy regulation and market interest rate guidance. Standing loan is convenient to be issued by mortgage, and qualified collateral includes bond assets with high credit rating and high-quality credit assets.

PSL: Mortgage Supplementary Loan (PSL, short for Pledged Supplementary Loan). As a new reserve policy tool, PSL has two meanings. First of all, at the quantitative level, it is a new channel for the base currency. Secondly, at the secondary price level, the financing interest rate obtained from the central bank through the mortgage assets of commercial banks will guide the medium-term interest rate.

Mlf: m means mid-term $ TERM That is to say, although the term is 3 months, the interest rate may be renegotiated and extended when it is close to maturity. Banks can obtain loan facilities through mortgage interest rate bonds and credit bonds. MLF requires all banks to provide small and micro loans to agriculture, rural areas and farmers. At present, the central bank releases water in order to promote loan recovery and tilt towards agriculture, rural areas and small and micro loans.

Tips: The above contents are for reference only.

Reply time: 2021-11-09. Please refer to the latest business changes announced by Ping An Bank in official website.