China central bank sees liquidity crunch ease
Updated: 2013-06-25 19:50
(Xinhua)
|
|||||||||
BEIJING - China's central bank on Tuesday stressed that the country is not short of liquidity and the current cash crunch in the interbank market will gradually ease.
In a second statement released within two days, the People's Bank of China said it has boosted liquidity support to some cautious financial institutions after the country's short-term interbank rates rocketed to unusually high levels during the past two weeks.
The Shanghai Interbank Offered Rate (SHIBOR) overnight rate, a basic gauge of interbank borrowing costs, surged to an all-time high of 13.44 percent last Thursday.
The central bank attributed the phenomena to a confluence of factors, including fast credit growth, the concentrated collection of business income taxes, surging cash demand during the Dragon Boat Festival holiday, changes in the foreign exchange market and banks' setting aside money to meet reserve requirements.
With seasonal factors and market panic waning, the current cash crunch will gradually ease, the central bank forecast.
It said it will continue to carry out a prudent monetary policy while actively using a combination of innovative tools, such as open market operations, short-term liquidity operations and standing lending facilities, to adjust liquidity to stave off abnormal fluctuations in the market.
The latest comment came as a swift follow-up to Monday's statement, in which the central bank asked the country's overstretched lenders to manage liquidity risks, signalling no intention to help ease the current squeeze.
China's key stock index sank 5.3 percent on Monday and recorded the biggest daily loss in nearly four years over liquidity concerns.
- Commercial lenders told to control liquidity risks
- 'No systemic risk' from ongoing liquidity crunch
- Liquidity squeeze bleeds equities
- 'No systemic risk' from ongoing liquidity crunch
- Liquidity squeeze bleeds equities
- Commercial lenders told to control liquidity risks
- China's central bank demands liquidity management
- PBOC urges banks to strengthen liquidity management
- China shares see biggest daily plunge in 4 years
- Philippine, US start Naval exercise in S China Sea
- Supreme Court gay rights ruling celebrated across US
- Rudd returns as Australian PM after Gillard
- Brazil protests intensify before Confed Cup semifinal
- Long lost weekend
- Park ready to charm China
- Prices climb as police crack down
- China 'most promising' in FDI
Most Viewed
Editor's Picks
Justice, Tibet style |
Getting the point of TCM |
Highlights of luxury China 2013 |
Recovery gives youth new chance at life |
Passing down the business |
Pumping up power of consumption |
Today's Top News
Proposed law puts curbs on family visas
Markets will stay volatile, continue to struggle: Expert
Promising outlook on US, China investment
US adoptees visit Chinese roots
Ecuador refutes Washington Post accusation
IBM to make Chinese job cuts
PBOC ends credit crunch, to go further
Snowden still at Moscow's airport, asylum pending
US Weekly
Geared to go |
The place to be |