The Research on the Medium-term Lending Facility of PBOC

Abstract

At present, China's economy is facing a stage of reform, in which the changes in the social financing structure are the most significant. In order to improve the liquidity and stability of traditional monetary policy, the People's Bank of China has proposed the Medium-term Lending Facility. The research of this article combs and analyzes the monetary policy of Medium-term Lending facility. The reasons for its occurrence, its characteristics, as well as its influence are introduced in detail, and data analysis is used to prove it. At the end, the article also put forward suggestions for future development changes.