BEIJING, Sept 7 China's central bank has
surveyed some banks on their demand for liquidity via
medium-term lending facilities (MLF) in tenors of six months and
one year, three sources with direct knowledge of the matter told
Reuters on Wednesday.
The medium-term lending facility is a supplementary lending
facility sometimes used by the central bank to adjust liquidity
in the banking system.
One batch of MLF loans worth 123.2 billion yuan ($18.4
billion) will mature on Wednesday.
The People's Bank of China typically asks banks on Friday's
about their MLF demand, the sources said.
The central bank has refrained from cutting banks' required
reserve ratios or interest rates of late, which would inject
long-term base money into the banking system. But it has
repeatedly injected shorter-term liquidity into the market to
maintain ample liquidity to support China's slowing economy.
($1 = 6.7 Yuan)
(Reporting by Beijing Newsroom; Writing by Lu Jianxin; Editing
by Kim Coghill)