Core Points - The Ministry of Finance and the People's Bank of China issued a notification to strengthen the management of collateral for commercial bank deposits in treasury cash management [1][2] - The notification specifies that commercial banks can use government bonds, local government bonds, and policy financial bonds as collateral for treasury deposits, with specific valuation percentages [1] - The notification emphasizes risk monitoring and control for commercial banks involved in treasury cash management, allowing for the recovery of funds in case of significant operational risks [2] Group 1 - The notification aims to enhance performance guarantees and improve risk control mechanisms for treasury cash management [1] - Commercial banks can use collateral based on the face value of bonds, with government bonds valued at 105%, local government bonds at 110%, and policy financial bonds at 110% of the treasury deposit amount [1] - Local government bonds can be pledged across regions without restrictions on the issuing entity [1] Group 2 - The Ministry of Finance and the People's Bank of China will monitor the operational risks and financial conditions of banks holding treasury deposits [2] - In case of default by a deposit bank, the notification outlines that the Ministry of Finance and the People's Bank of China will determine the handling of such situations based on the deposit agreement [2] - The notification allows for the timely recovery of funds if a bank faces significant safety risks or deteriorating operational conditions [2]

Core Points - The Ministry of Finance and the People's Bank of China issued a notification to strengthen the management of collateral for commercial bank deposits in treasury cash management [1][2] - The notification specifies the types of collateral that can be used, including government bonds, local government bonds, and policy financial bonds, with certain restrictions on partially repaid bonds [1] - The valuation and ratio for collateral are set at 105% for government bonds, 110% for local government bonds, and 110% for policy financial bonds, based on the amount of treasury deposits [1] Summary by Sections - **Notification Implementation**: The notification takes effect immediately and replaces the previous regulation from 2015. Existing pledges made under the old rules will not be adjusted [2] - **Collateral Management**: The notification aims to enhance risk control mechanisms and ensure the safety of treasury cash management funds by defining acceptable collateral types and their valuation [1][2] - **Future Adjustments**: The Ministry of Finance and the People's Bank of China will adjust the collateral types and ratios as needed based on changes in the bond market to ensure the safety of deposit funds [2]

Core Viewpoint - The Ministry of Finance and the People's Bank of China issued a notification to enhance the management of collateral for commercial banks' time deposits in treasury cash management [1] Group 1: Notification Details - The notification allows commercial banks participating in central and local treasury cash management to use various types of bonds as collateral for treasury time deposits, including book-entry government bonds, local government bonds, and policy financial bonds [1] - Bonds that have been partially repaid are not eligible to be used as collateral [1] - Local government bonds can be pledged across regions without restrictions on the issuing entity [1]