Chinese name: Standing Lending Facility

English name: Standing Lending Facility

It was created by the central mom in early 2013 for an indeterminate period of time. The specific process is that banks and other financial institutions are short of money, you can apply to the central bank one-to-one mortgage, the term is generally 1-3 months. Mainly occurs in the market "lack of money", through the SLF supplemental liquidity, to meet the large liquidity needs of financial institutions, regulating short-term interest rates.

Expansion:

MLF (spicy powder)

Chinese name: Medium-term Lending Facility

English name: Medium-term Lending Facility

It is the central bank created in September 2014, the operation period is usually three months, sometimes there are six months. The object for commercial banks, policy banks and these financial institutions, the general volume will be relatively large. It is a monetary policy tool for the central mom to provide medium-term base money, and in this way guide medium-term interest rates.

TLF (special spicy powder)

Chinese name: Temporary Liquidity Facility

English name: Temporary Lending Facility

This dish was developed by the central mom in January this year, through the TLF operation for the five major banks to provide temporary liquidity support, the operation period of 28 days, the cost of funds and the same term The open market operation rate is roughly the same, characterized by the need for collateral, the five banks directly brush your face. The creation of the TLF, can be seen in the central mom in order to ensure the smooth operation of the money market, if necessary, will calm the market liquidity stage tension.

PSL (fear of sour and spicy)

Chinese name: Pledged Supplementary Lending

English name: Pledged Supplementary Lending

PSL is a reserve policy tool launched by the central mom in 2014, commercial banks through collateralized assets from the central bank to obtain financing, the term is generally 3-5 years. By using PSL, the central mom not only releases liquidity to the market, but also serves to guide the market's medium- and long-term interest rates.

SLO (Sour Lotus Root)

Chinese name: Short-term Liquidity Operations

English name: Short-term Liquidity Operations

It's the ultra-short-term reverse repo, which is dominated by short-term repo with a maturity of less than 7 days. Reverse repo is the central mom spend money in the market to buy notes, expanding the market liquidity behavior; and positive repo is the central mom sell all kinds of notes, from the market to collect "money" back, is the contraction of liquidity means. The central mom through the hot and sour root mainly to regulate the money supply and interest rates within seven days of this ultra-short-term.