China's Central Bank Outlines Collateral Rules for Bond Backstop
Photo: TokenPost
The People's Bank of China (PBOC) plans to require high-grade collateral for a proposed liquidity backstop aimed at breaking a cycle of fund withdrawals and bond sales during marketwide stress. PBOC Gov. Pan Gongsheng announced the plan at a Beijing forum Oct. 19. The central bank is developing the joint liquidity facility with the National Financial Regulatory Administration and the China Securities Regulatory Commission. The facility is intended for periods when asset managers face marketwide liquidity pressure and redemptions drive bond sales that lead to further withdrawals.
Source: TokenPost
