China steps up liquidity support for small banks

BEIJING -- China's central bank decided Friday to beef up liquidity support for medium and small-sized banks by increasing the re-discount and standing lending facility (SLF) quota.

The People's Bank of China arranged 200 billion yuan (about $29 billion) re-discount and 100 billion yuan SLF quota for medium and small-sized banks to keep their liquidity sufficient, it said in a statement.

The medium and small-sized banks can apply for the liquidity support by using qualified bonds, interbank negotiable certificates of deposit and bills as collateral.

To maintain stable liquidity in the middle of the year, the central bank Friday pumped 100 billion yuan into the financial system through the operations with 28-day reverse repos at an interest rate of 2.85 percent.