China tells some banks not to re-discount bills at rates below 0.5%, sources say
July 14 (Reuters) - Chinese regulators have issued guidance to some banks barring them from conducting bill re-discount operations at rates below 0.5%, sources said on Tuesday, as regulators move to rein in aggressive bill buying amid weak loan demand. The guidance came after bill re-discount rates plunged in recent months as banks — struggling to find willing borrowers in a sluggish economy — turned to the bill market to meet lending quotas and park excess liquidity.
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July 14 (Reuters) - Chinese regulators have issued guidance to some banks barring them from conducting bill re-discount operations at rates below 0.5%, sources said on Tuesday, as regulators move to rein in aggressive bill buying amid weak loan demand. The guidance came after bill re-discount rates plunged in recent months as banks — struggling to find willing borrowers in a sluggish economy — turned to the bill market to meet lending quotas and park excess liquidity. Traders have said rates as low as 0.01% were not uncommon at month-end. One of the sources said the tighter oversight was triggered by bill rates falling too fast and too low when banks rushed to buy bills in bulk, undermining regulators’ efforts to guide market expectations.
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- July 14 (Reuters) - Chinese regulators have issued guidance to some banks barring them from conducting bill re-discount operations at rates below 0.5%, sources said on Tuesday, as regulators move to rein in aggressive bill buying amid weak loan demand. The guidance came after bill re-discount rates plunged in recent months as banks — struggling to find willing borrowers in a sluggish economy — turned to the bill market to meet lending quotas and park excess liquidity.
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China tells some banks not to re-discount bills at rates below 0.5%, sources say
Sources1TypeCoverageInvesting.com · Economy