ANCHOR OF ECONOMIC
AND FINANCIAL STABILITY
- MANAGEMENT OF LIQUIDITY
- Enhancing RMB Liquidity Provision
- Broadening Range of Eligible Collateral at MAS' Liquidity Facilities
MANAGEMENT OF LIQUIDITY
ENHANCING RMB LIQUIDITY PROVISION
In July 2014, MAS introduced the MAS Overnight RMB Liquidity Facility that allows financial institutions to borrow RMB funds on an overnight basis.
The facility bolsters market confidence by providing the financial institutions with a backstop for their short-term RMB funding needs.
The facility also complements the existing MAS RMB Facility that allows banks to borrow RMB funds on a term basis (1-week, 1-month and 3-month) for trade, direct investment and market stability purposes.