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China central bank queries banks on need for MLF loans, rates remain same: traders

Published 05/16/2016, 12:24 AM
Updated 05/16/2016, 12:30 AM
© Reuters. A Chinese national flag flies at the headquarters of the People's Bank of China, the country's central bank, in Beijing

SHANGHAI (Reuters) - China's central bank surveyed some banks on their demand for liquidity under its medium-term lending facility (MLF), two sources with direct knowledge of the issue told Reuters on Monday.

The bank kept the rates on offer unchanged from the last operation in April, at 2.75 percent for three-month loans and 2.85 percent for six-month loans, sources said.

The medium-term lending facility is a supplementary lending facility sometimes used by the central bank to adjust liquidity in the banking system.

© Reuters. A Chinese national flag flies at the headquarters of the People's Bank of China, the country's central bank, in Beijing

Reuters could not reach the central bank for an immediate response.

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