China's central bank 5 billion yuan supports banks to issue perpetual bonds to supplement capital
China News Service, Beijing, August 27 (Reporter Wei Xi) The People's Bank of China launched a central bank bill swap (CBS) operation on the 27th, with a volume of RMB 5 billion.
This move will support banks in issuing perpetual bonds to supplement capital, improve the market liquidity of bank perpetual bonds, and enhance the ability of financial services to serve the real economy.
The Central Bank of China created the Central Bank Bill Swap Tool (CBS) in January 2019. Primary dealers in open market businesses can use perpetual bonds issued by qualified banks to exchange for central bank bills from the central bank.
The 5 billion CBS operation period is 3 months, the rate is 0.10%, and the operation is open to public bidding for primary dealers of open market business. The winning bidders include large state-owned commercial banks, joint-stock banks, city commercial banks, rural commercial banks, securities companies, etc. Financial institutions. The swap-in bonds include both perpetual bonds issued by large state-owned commercial banks and joint-stock banks, and perpetual bonds issued by city commercial banks, reflecting the support for small and medium banks to issue perpetual bonds to supplement capital.
The central bank stated that it will comprehensively consider market conditions and reasonable needs, and adopt a market-based approach to steadily and cautiously carry out CBS operations. (Finish)