Core Viewpoint - The People's Bank of China (PBOC) has announced a shift in the Medium-term Lending Facility (MLF) operation to a multi-price bidding system, indicating a complete exit of the MLF interest rate from its policy attributes, which is expected to lower banks' funding costs and enhance financial support for the real economy [1][4][6]. Group 1: MLF Operation Changes - Starting from March 25, 2025, the PBOC will conduct a 450 billion yuan MLF operation, marking a net injection of 63 billion yuan for March, the first net injection since July 2024 [2][3]. - The adjustment to a multi-price bidding system for MLF signifies a move towards market-oriented interest rates, reducing the complexity of policy rates [4][5]. Group 2: Impact on Financial Institutions - The new MLF operation is expected to alleviate the pressure on banks' net interest margins by lowering funding costs, as institutions will have more flexibility in pricing based on market conditions [6][7]. - The PBOC's liquidity management tools have become more diversified, allowing for better alignment with the varying liquidity needs of financial institutions [7].
央行最新调整！MLF政策属性完全退出，降低银行负债成本
券商中国·2025-03-24 10:54