In order to improve the liquidation of a bank of perpetual bonds (including invalid capital capitals) and support banks to send eternal bonds to fill in capital, China's Popular Bank has decided to create a Central Bank Bankruptcy (CBS), open market trade. Levels of retailers can use the eternal bonds issued by qualified banks to exchange central banking facts from the People's Bank of China. At the same time, the eternal bonds of the bank with a subject of at least AA are included in the scope of competing sides for the World Terminate Permanent Provision (MLF) of the Chinese People's Popular Bank (TMLF), Standing Loan Facility (SLF) and refinancing.
Attachment: China's leading responsibility for the People's Bank responded to questions about the creation of a central banking exchange exchange
1. What are the main considerations to create a central banking bill?
A:In order to ensure the sustainable financial support for the real economy, banks need sufficient capital, and eternal bonds are an important channel for banks to complete Tier 1 capital. The exchange of exchange of the central bank can increase the qualitative side of financial institutions that have banking perpetual bonds, improve the market volatility of banking constraints and improve the market readiness to subscribe for banking perpetual bonds, so that support banks emit eternal bonds to fill up capital. In order to create favorable conditions to increase financial support for the real economy, it also helps to unlock the transmission mechanism of monetary policy, preventing and preventing financial risks and alleviating the financial difficulties of small and micro enterprises and private businesses.
2. How does the Central Bank carry out the central banking legal exchange?
A:The operation of central bank interchange adopts a fixed method of offers and leads open offers for the primary merchants of the open market. The China's Popular Bank exchanged the wage bonds issued by the winner bidding rates and exchanged the same amount of central bank bills. When it expires, the Chinese People's Bank and the primary traders exchange interconnections. The interest of the bank's eternal bond is still owned by the primary merchant. The term of the central banking exchange factor does not exceed in principleFor three years, exchanges of central banks are not available for transactions such as buying and selling spots, purchasing rap, etc., but can be used for mortgages, including as late as institutions to participate in central banking monetary policies. The term of the central bank is the same as the interchange term, that is, the central bank account expires when the exchange expires. Before the exchange of exchanges expires, the primary merchant can apply for the previous bond of the bank and end the transaction soon with the agreement of the People's Bank of China. Since the operation of central bank interchange is "voucher-for-voucher" and does not involve basic coins, the effect on the liquidation of the banking system is neutral.
3. What eternal bonds of banks can be accepted by the operation of the exchange of invoices from the central bank?
A:At the moment, the operation of central bank interchange can accept eternal bonds issued by banks that fulfill the following conditions:One isThe capability of fitness at the end of the last quarter is not lower than8%;Second it isOverdue at the end of the last quarterThe nonproductive loan ratio calculated for 90-day loans is not higher than 5%;The third isIt canceled no losses in the last three years;FourthThe size of the assets at the end of the last quarter is not lower than200 billion dollars;Five areAfter replenishment of capital, it can increase support for the real economy.
(This article is from the website of the People's Bank of China)