PBoC ramps up funding support for policy banks

Biggest monthly increase for cheap loan funding in over a year likely to target property sector

The People’s Bank of China, Beijing
The People's Bank of China

The People’s Bank of China (PBoC) injected 350 billion yuan ($4.92 billion) in low-cost loans to “policy banks” through its pledged supplementary lending facility (PSL) in December. 

This was the largest monthly increase in the amount of loans the PBoC has made via the PSL tool since November 2022. It brought outstanding PSL loans to 3.25 trillion yuan at the end of December, compared with 2.9 trillion yuan on November 30.

The central bank did not say how the policy banks would use the loans when

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