Bank Regulation

China To Help Smaller Banks Retain Liquidity

China’s central bank announced over the weekend it plans to use several tools to keep liquidity in the market and that it will provide liquidity support to small and medium-sized banks.

Reuters reported that People’s Bank of China made the statement during a meeting with the Financial Stability and Development Committee. The banks and lenders that participated in the meeting also said volatility in the interbank market is calming down.

In December the People’s Bank of China announced a new policy tool aimed at boosting lending to small and private companies. The government of China said at the time the country will roll out a targeted medium-term lending facility which it said will provide a “long-term stable source of funding for financial institutions based on the growth of their loans for small and private firms.” The central bank in China went on to note that it plans to continue to put in place a “prudent and neutral” monetary policy that will ensure liquidity. It also said its future targeted policies will be more effective.

Investors have been jittery ever since late May when the China Banking and Insurance Regulatory Commission took control of Baoshang Bank. That sent the markets in China into a tailspin, prompting People’s Bank of China to inject cash. That lead to speculation that more takeovers were coming. Earlier in June China’s central bank said there won’t be any more takeovers of banks after that intervention. The government said that was a standalone incident and not indicative of a policy. “Everyone, please don’t worry. At present we don’t yet have this plan,” it said in a statement on its website, reported Reuters.

——————————

NEW PYMNTS DATA: HOW WE SHOP – SEPTEMBER 2020 

The How We Shop Report, a PYMNTS collaboration with PayPal, aims to understand how consumers of all ages and incomes are shifting to shopping and paying online in the midst of the COVID-19 pandemic. Our research builds on a series of studies conducted since March, surveying more than 16,000 consumers on how their shopping habits and payments preferences are changing as the crisis continues. This report focuses on our latest survey of 2,163 respondents and examines how their increased appetite for online commerce and digital touchless methods, such as QR codes, contactless cards and digital wallets, is poised to shape the post-pandemic economy.

TRENDING RIGHT NOW