Core Viewpoint - The notification aims to strengthen the management of collateral for time deposits in commercial banks participating in the national treasury cash management, enhancing performance guarantees and risk control mechanisms to ensure the safety of treasury cash management funds [3][4]. Group 1: Collateral Scope and Valuation - The collateral for time deposits in national treasury cash management can include book-entry government bonds, local government bonds, and policy financial bonds, with the stipulation that bonds with partial repayment cannot be used as collateral [3]. - Local government bonds are not restricted by the issuing entity and can be pledged across regions [3]. - The collateral is valued at face value, with government bonds, local government bonds, and policy financial bonds pledged at 105%, 110%, and 110% of the treasury time deposit amount, respectively [3][4]. Group 2: Pledge Operation Process - Commercial banks participating in the treasury cash management must follow the established operational procedures for pledging local government bonds or policy financial bonds, adhering to previous regulations issued by the Ministry of Finance and the People's Bank of China [4]. Group 3: Risk Monitoring and Default Handling - The finance department, in collaboration with relevant authorities, will enhance risk monitoring and prevention for commercial banks' time deposits, focusing on the operational risks and financial conditions of the deposit banks [4]. - In the event of a default, such as failure to repay principal and interest on time, the finance department has the authority to handle the situation according to the terms of the deposit agreement, including market-based disposal of pledged bonds if necessary [5]. - If the default is related to force majeure or external risk events, the finance department will negotiate with the People's Bank of China to determine the appropriate handling plan [6]. Group 4: Implementation and Adjustments - The notification is effective from the date of issuance, and the previous notification regarding the management of collateral for treasury time deposits is hereby abolished [6]. - The finance department and the People's Bank of China will adjust the range and ratio of collateral based on changes in the bond market to ensure the safety of deposit funds [6].