People’s Bank of China reported to grant new loans to commercial banks

the-peoples-bank-of-chinaThe Central Bank of China – according to China International Capital Corporation – will grant approximately 400 billion yuan ($65 billion) worth of loans to commercial banks. This decision will aim at maintaining abundant liquidity and supporting the cooling economy. Loans will be issued via the Pledged Supplementary Lending which is an instrument backed by collateral often with a maturity of three months to a year.