China’s Central Bank Plans Joint Liquidity Tool for Nonbank Redemptions

China’s central bank plans a joint liquidity tool for large redemptions at nonbank financial institutions, part of a wider policy package addressing liquidity strains and access to domestic financial markets. People’s Bank of China Gov. Pan Gongsheng presented the plans at the Financial Street Forum in Beijing on Oct. 19. The bank would establish the tool with the National Financial Regulatory Administration and the China Securities Regulatory Commission (CSRC) for situations involving large redemptions at nonbank institutions. The central bank also plans to expand eligibility for its Standing Lending Facility and connect China’s interbank and exchange bond markets.

Source: TokenPost